(Corrects bullet and paragraph 8 to clarify deal is expected to
close second half, not second quarter, of 2017)
* Deal expected to close in second half of 2017
* Offering at 14.4 pct premium
* Zeltiq shares jump 12.6 pct premarket
Feb 13 Botox maker Allergan Plc said it
would buy body-contouring product maker Zeltiq Aesthetics Inc
for about $2.48 billion, adding muscle to its line-up
of products used to fight fat and smoothen wrinkles.
Zeltiq's CoolSculpting System is approved by the U.S. Food
and Drug Administration and utilizes a cooling mechanism to
reduce the appearance of stubborn fat - which may not respond to
diet or exercise - without disturbing surrounding tissue.
The Botox maker agreed to pay $56.50 per Zeltiq share, or a
premium of 14.4 percent to the company's Friday close.
Zeltiq's shares jumped 12.6 percent to $55.65 in premarket
trading on Monday.
Dublin-based Allergan, led by its acquisitive Chief
Executive Brent Saunders, has orchestrated a flurry of deals
since its $160 billion merger with Pfizer Inc collapsed
Earlier this month, Saunders painted lofty expectations for
its injection Kybella - used to diminish fat under the chin,
leaving surrounding tissue largely unaffected - for 2017, and
expressed an interest in continued deal making.
In the three months ended Dec. 31, total medical aesthetic
product sales accounted for 28 percent of Allergan's net
Allergan, which estimates that body contouring is a $4
billion market, said the transaction is expected to close in the
second half of 2017.
Moelis & Co is Allergan's financial adviser, while Debevoise
& Plimpton LLP serve as legal counsel. Guggenheim Securities is
Zeltiq's financial adviser, while Cooley LLP will provide legal
(Reporting by Natalie Grover in Bengaluru; Editing by Shounak
Dasgupta and Martina D'Couto)