After cutting all jobs at its Goleta facilities in July as part of cost-cutting measures to prepare for an acquisition, Botox maker Allergan announced this morning it has agreed to be bought by Actavis for $66 billion.
The Irvine-based, publicly traded company had been courting buyers for most of the past year. The closure of its Goleta location, which impacted 300 jobs, accompanied reports of a $53 billion takeover bid from Canadian Valeant Pharmaceuticals International and hedge fund manager Bill Ackman.
Not only did that pair offer less, but Allergan was also off-put by their forward takeover method, which included a series of demanding letters and a low-ball initial offer.
The Actavis deal is worth $219 a share in cash and stock. In a statement following the announcement, Valeant CEO J. Michael Pearson said that was a number he “cannot justify to its own shareholders.”
If the deal goes through, it will be the largest-ever for Actavis and the third-largest health care deal ever in the United States, according to Standard & Poor’s Capital IQ.
Although company spokespeople did not immediately return requests for comment, it is unlikely the fate of Allergan’s Goleta facility will change.
As of 10 a.m. Pacific Time, Allergan shares were trading up 5 percent to about $209, still below the takeover price.