Allergan makes $2.5B acquisition of 'body contouring' business

This deal was done for the sake of appearances.

Drug giant Allergan has reached a deal to acquire Zeltiq Aesthetics for $2.5 billion, growing its portfolio of treatments to improve the body's appearance.

Allergan, whose therapies include wrinkle treatment Botox, said Monday that it would pay $56.50 per share for Pleasanton, Calif.-based Zeltiq, which has trained its focus on what it calls the burgeoning market for "body contouring."

Zeltiq's treatments include a non-surgical process called CoolSculpting, which Allergan said uses a patented cooling system to "induce a natural, controlled elimination of fat cells without affecting surrounding tissue."

"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," Allergan CEO Brent Saunders said in a statement.

The deal reflects a 14.4% premium from Friday's Zeltiq closing price of $49.40.

After the deal was revealed Monday morning, Zeltiq shares shot up 12.6% to $55.60 in pre-market trading. Allergan shares were down 0.1% to $246.10.

The acquisition marks the latest in a series of deals for Ireland-based Allergan following the company's scuttled bid to acquire New York-based Pfizer. That tie-up was upended when the Obama administration stiffened rules to prevent U.S. corporations from engineering deals to move their tax headquarters overseas.

Follow Paste BN reporter Nathan Bomey on Twitter @NathanBomey.