Drugmaker Allergan Plc said on Tuesday it would buy LifeCell, a regenerative medicine unit owned by privately held Acelity LP Inc, for $2.9 billion in cash, bringing the number of deals it has made this year to an even dozen.
LifeCell makes regenerative tissue products that are commonly used in breast reconstruction procedures and complex hernia surgeries to provide soft tissue support. The products will support Allergan's portfolio of medical aesthetics, breast implants and tissue expanders, the company said.
Allergan Chief Executive Brent Saunders has described the company's acquisition strategy as being one of "stepping stones." Allergan's deal to sell itself last year to Pfizer Inc for $160 billion was dropped due to a change in tax law.
Allergan, best known for its Botox product, said Lifecell's 2016 sales are expected to be $450 million and grow at a mid-single digit rate. It expects the deal to close in the first half of 2017.
Dublin-based Allergan, which was created through the combination of Actavis and Allergan, earlier this year sold its generics business to Teva Pharmaceutical Industries, freeing up cash for deals.
Allergan has agreed to 12 deals this year, including the $1.7 billion acquisition of Tobira Therapeutics Inc, maker of an experimental treatment for fatty liver disease, and $639 million acquiring Vitae, maker of an experimental drug to treat psoriasis.
Allergan shares fell 1.2 percent to $190.17.
(Reporting by Caroline Humer in New York and Akankshita Mukhopadhyay in Bengaluru; Editing by Martina D'Couto and Frances Kerry)