GlaxoSmithKline (GSK) has agreed buy Stiefel Laboratories, the US skincare specialist, for $3.6 billion (£2.5 billion).
The Florida-based company, which is part-owned by Blackstone Group, the private equity house, will give GSK an enlarged dermatology business with annual sales of $1.5 billion.
Andrew Witty, the chief executive of GSK, said, “As part of our strategy to grow and diversify GSK’s business, we are continuing to make new investments through targeted acquisitions.
"This transaction will create a new world-leading, specialist dermatology business and re-energise our existing dermatology products.
GSK is paying $2.9 billion in cash and will assume $400 million of Stiefel’s net debt.
A potential further $300 million cash payment is contingent on Stiefel’s future performance.
GSK’s existing prescription dermatological products will be combined with Stiefel’s and the new business will operate under the Stiefel identity within GSK
The deal is the latest in a wave of takeovers among big pharmaceutical companies, which are looking for new sources of sales growth as some of their biggest drugs face competition from cheaper generics.