Allergan plc has acquired the regenerative medicine company LifeCell for $2.9 billion in cash, subject to customary adjustments, Allergan reports.

This acquisition combines LifeCell's products ALLODERM® and STRATTICETM tissue matrices commonly used in breast reconstruction and abdominal wall surgeries and REVOLVETM, a single use high-volume fat grafting device that uses patients' own fat to enhance volume in plastic and reconstructive procedures, with Allergan's medical aesthetics, breast implants and tissue expanders. LifeCell has also developed ARTIATM, a porcine based tissue matrix which is approved and launched in some European markets.

"The acquisition of LifeCell … serves as our entry point into regenerative medicine as we create a world-class aesthetic and regenerative medicine business in plastic surgery,” says Brent Saunders, Chairman and CEO of Allergan, in a news release.

Allergan anticipates the LifeCell assets will generate approximately $450 million in 2016 revenue, growing at a mid-single digit rate, approximately 75% gross margin and approximately 40% operating margin in 2016. In addition to its commercial products, upon close Allergan will also acquire LifeCell's manufacturing capabilities and its R&D operations, based in New Jersey.  

Allergan's acquisition of LifeCell is subject to, expiration or termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and fulfillment of certain other customary conditions to closing. Pending such approvals and fulfillment of other conditions, Allergan currently anticipates closing the transaction during the first half of 2017.

Guggenheim Securities and Barclays are serving as financial advisors to Allergan and Debevoise & Plimpton LLP is serving as Allergan's lead legal counsel.