British pharmaceutical giant GlaxoSmithKline has agreed to buy US-based skincare group Stiefel Laboratories in a deal worth up to $3.6 billion.
The deal for Stiefel, a maker of anti-itching creams, acne treatments and other skincare products, had been widely expected after US media reports over the weekend.
'GSK and Stiefel Laboratories today announced that they have signed an agreement to create a new world-leading specialist dermatology business,' the pair said in a joint statement.
'Under the terms of the agreement GSK will acquire the total share capital of Stiefel for a cash consideration of $2.9 billion. GSK also expects to assume $0.4 billion of net debt upon closing. A potential further $0.3 billion cash payment is contingent on future performance,' the statement added.
Stiefel is part-owned by US buyout firm Blackstone Group and was put up for sale earlier this year.
Stiefel Laboratories has been controlled by the founding Stiefel family for over 160 years. Blackstone spent $500m on a large minority stake in the company in 2007.
The deal is the latest in a series of takeovers among large pharmaceutical companies increasingly under pressure from rivals who make generic treatments, those which no longer have patent protection.
Last week, GSK and Pfizer, two of the world's largest pharmaceutical groups, announced a plan to combine their HIV drugs businesses into a new company.
