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January 10, 2017 By Alex Keown , BioSpace.com Breaking News Staff LAVAL, Quebec – Valeant Pharmaceuticals has agreed to sell its CeraVe, AcneFree and AMBI skincare brands to L’Oréal for $1.3 billion in cash, the company announced this morning. Valeant will use the proceeds from the sale to permanently repay term loan debt under its Senior Credit Facility. Valeant has about $30 billion in debt it needs to pay off. The transaction is expected to close in the first quarter of 2017. The CeraVe, AcneFree, and AMBI product lines have annualized revenue of approximately of $168 million, Valeant said in a statement. The deal with L’Oréal is the second one announced this morning by Valeant. Earlier today, the Canadian company announced a sale of its Dendreon Pharmaceuticals properties for about $820 million. Like the skin care assets, the proceeds from the sale of the Dendreon went to repay debt. Valeant acquired Dendreon in February 2015 for $400 million in a stalking horse bid after the Seattle-based company declared bankruptcy. “We are pleased to announce the progress we are making in reshaping our product portfolio and driving value for our shareholders,” Valeant Chief Executive Officer Joseph Papa said in a statement. “The success of these products, and today’s transaction, is a testament to the Valeant teams who have impressively grown these brands over the past several years. We believe these products will benefit even further from the resources and capabilities of a global beauty company like L’Oréal, which is well equipped to build on the success of these brands and expand into new global markets. Our remaining consumer products business is well positioned for continued advancement within Valeant’s portfolio.” It is likely Valeant will continue to announce deals to sell off its non-core assets. Irina Koffler , an analyst with Mizuho Securities USA , told Reuters that Valeant is likely to “divest its dental business as well as its interests in some geographies.” CeraVe, AcneFree and Ambi will become part of L’Oréal’s Active Cosmetics Division, which includes brands such as La Roche-Posay, Vichy and SkinCeuticals, L’Oréal said in a statement on its website. Brigitte Liberman , president of L’Oréal Active Cosmetics Division, said the three brands being acquired from Valeant “will deepen our relationships with health professionals and will strengthen our positions in North America in this key and fast growing market.” Shares of Valeant are up about 8 percent this morning, trading at $16.56. In an effort to pay off its massive debt, Valeant has identified about $8 billion worth of assets to sell. In September, the company put a for sale sign on its subsidiary, iNova Pharmaceuticals . Valeant’s troubles don’t just extend to its finances. Valeant has been under investigation by the U.S. attorney’s office in New York since last year following news of the Philidor accounting practices became known. The company said it has been cooperating with the federal authorities, but cannot comment on the ongoing investigation. Additionally, Valeant said in a statement, that it cannot comment on possible rumored investigations , such as the Pearson and Schiller possibilities. The CeraVe brand portfolio offers a range of advanced skincare products, including cleansers, moisturizers, sunscreens, healing ointments and a dedicated baby line. Developed with dermatologists, CeraVe is one of the fastest growing skincare brands in the U.S. with average growth over the past two years exceeding 20 percent, Valeant said. The AcneFree brand portfolio offers a full range OTC cleansers and acne treatments in the U.S. introduced to the market in 1966. The AMBI brand portfolio offers a range of skincare products formulated for the needs of multicultural consumers that includes creams, cleansers and moisturizers in the face and body category.