Allergan to buy Acelity's LifeCell for $2.9bn

Biopharmaceutical company Allergan has agreed to buy Acelity’s regenerative medicine business, LifeCell, for $2.9bn in cash.

Allergan said the deal will combine LifeCell's novel, regenerative medicines business, including its high-quality and durable portfolio of dermal matrix products with its portfolio of medical aesthetics, breast implants and tissue expanders.

The Dublin-based group expects the LifeCell assets to generate about $450m in 2016 revenue, growing at a mid-single digit rate, approximately 75% gross margin and approximately 40% operating margin in 2016.

LifeCell's commercial portfolio features Acellular Dermal Matrices, commonly used in breast reconstruction procedures and complex hernia surgeries to provide soft tissue support.

Upon close, Allergan will also buy LifeCell’s innovative manufacturing capabilities and its research and development operations in New Jersey.

Allergan chairman and chief executive Brent Saunders said: “The acquisition of LifeCell is both strategically and financially compelling to Allergan and serves as our entry point into regenerative medicine as we create a world-class aesthetic and regenerative medicine business in plastic surgery. LifeCell's regenerative medicine unit is a strong fit with our existing business and can be significantly strengthened with our infrastructure and global reach.

"This acquisition is an immediately accretive investment that enhances our near-term and long-term growth profile with products that enjoy strong sales and are the leading choices for surgeons who rely on them for successful surgical procedures."

At 1520 GMT, Allergan shares were down 1.3% to $190.08.