On a down Monday for the stock market, Bausch Health Companies (BHC +11.02%) shares rose at a double-digit rate. Investors, cheered by news of a fresh company acquisition, pushed its stock price up by more than 11% on the day.
Tightening its hold on a key market
Well before market open, Bausch announced that its Solta Medical aesthetics unit closed a deal to acquire China's Wuhan Shibo Zhenmei Technology. Wuhan is a distributor of Solta's products, so the arrangement effectively moves distribution in-house for the unit.
Image source: Getty Images.
In the press release trumpeting the acquisition of the new asset, Bausch did not provide any financial details of its purchase.
The healthcare company did write that "This acquisition provides Solta Medical with an enhanced ability to address increasing market demand for aesthetics treatments through localized solutions and proven technologies."
A popular Solta offering in the large Asian country is Thermage FLX, a non-invasive skin tightening solution.
NYSE: BHC
Key Data Points
A clear win
Without concrete financial figures, investors are in the dark regarding what Bausch and its aesthetics business are sacrificing to own Wuhan. This, however, isn't as relevant as the company owning and fully controlling a distributor in one of the world's busiest markets. Investors were justified in reacting positively to Bausch's announcement of its latest deal.
