A blank-check company backed by former Allergan PLC Chief Executive Brent Saunders is set to merge with a private equity-backed health and beauty company in a deal valued at $1.1 billion.
Mr. Saunders’ vehicle, Vesper Healthcare Acquisition Corp. , is set to combine with the HydraFacial Co., a producer of skin-care products and treatments sold by beauty retailers, spas and dermatology clinics. Once completed, the deal will take the private equity-owned company onto the public market.
HydraFacial, of Long Beach, Calif., has been owned by health care-focused firms Linden Capital Partners and DW Healthcare Partners since December 2016. Both firms will maintain a combined 25% stake in the business and each will retain a board seat upon closure of the deal, expected in the first half of 2021.
Vesper will pay $975 million for the company, with up to an additional $75 million to be paid if HydraFacial completes specific prospective acquisitions it has identified.
As part of the deal, a group of institutional investors that includes Fidelity Management & Research Co., Redmile Group LLC, Principal Global Investors LLC, Camber Capital Management LP and Woodline Partners Ltd. are contributing $350 million in the form of a private common stock purchase.
