Written by StockNews.com

Pharma giant Allergan plc (NYSE:AGN) is adding another line of cosmetic treatments to its portfolio, announcing today (Feb 13, 2017 | 8:10am)  that it will acquire body contouring specialist ZELTIQ Aesthetics for nearly $2.5 billion in cash.

The $56.50 per share takeover prices represents a relatively mild 14% premium over ZELTIQ’s Friday closing price of $49.40.

The transaction, which is subject to the customary regulatory and shareholder approvals, is expected to be completed in the second half of 2017.

The acquisition of ZELTIQ will be immediately accretive to earnings. The crown jewel of the buyout is ZELTIQ’s flagship CoolSculpting System, which leads all comparable body contouring systems in terms of sales growth. According to the company, “CoolSculpting works by gently cooling targeted fat cells in the body to induce a natural, controlled elimination of fat cells without affecting surrounding tissue.” The system is known to be less damaging than traditional liposuction.

The global body contouring market is currently around $4 billion in size, and growing, the companies noted.

AGN commented via press release:

“The acquisition of ZELTIQ is highly complementary and strategic to Allergan. By adding the best-in-class body contouring CoolSculpting System to our best-in-class facial aesthetics, plastic surgery and regenerative medicine offerings we are creating a world-class aesthetics business,” said Brent Saunders, Chairman and CEO of Allergan. “With CoolSculpting, our offerings to plastic surgeons, dermatologists and aesthetic practitioners will now extend to three of the largest and fastest-growing segments of their practices, putting Allergan in a unique position to provide expanded customer service, and help meet the needs of patients.”

...Year-to-date, AGN has gained 17.31%, versus a 3.57% rise in the benchmark S&P 500 index during the same period.

AGN currently has a StockNews.com POWR Rating of B (Buy), and is ranked #24 of 134 stocks in the Medical – Pharmaceuticals category.