Nestle buys Valeant skincare rights for $1.4 billion

FORTUNE — Nestlé  SA (NSRGY) has focused on filling its customers’ insides for most of its history with its vast range of food and drinks.  But it’s now looking to get into higher-margin businesses that revolve around filling their outsides.

The Swiss consumer giant–the maker of Di Giorno pizzas, Butterfingers candy bars and Lean Cuisine frozen meals–marked its second major foray in three months into the wellness business Wednesday, buying the US and Canadian rights to five skin filler and toxin products of Canada’s Valeant Pharmaceuticals International Inc (VRX) for $1.4 billion in cash.

Nestlé said it would acquire the full commercial rights in the US and Canada to Valeant’s Restylane, Perlane and Emervel and Dysport, a range of skin filler and toxin products.  The company already has the rights to sell these everywhere else in the world, but the US and Canadian markets account for over 50% of the global market. It will also get the full global rights to Sculptra, an facial injectable anti-aging product.

In February, Nestlé bought out its partner L’Oréal (LRLCY) from its existing Galderma joint venture for around $4.2 billion and folded its existing infant skincare business into it. That deal is expected to close in the summer. The move is part of a broader corporate strategy to grow in “the space between food and pharma”, a spokesman said.

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“This move will reinforce Galderma’s leading position in the industry when it becomes Nestlé Skin Health by allowing it to complete its geographic footprint for its strong portfolio of brands and leading medical solutions globally,” Nestlé Chief Executive Paul Bulcke said in a statement.

For Valeant, the deal will top up its cash reserves as it pursues Allergan Inc (AGN), the maker of Botox. Allergan has already rejected a $46 billion  ash-and-stock bid from Valeant, but the Canadian company has said it will present an improved offer later Wednesday. Valeant may hope that the sale of its current portfolio of filler products will help convince Allergan shareholders and management that it is committed to developing the existing Allergan product range.

Valeant said in a statement that the Nestlé deal doesn’t depend on the Allergan one going through.

“We believe that this transaction is extremely attractive both to Valeant and Galderma, and dovetails well with our announced plans for a transaction with Allergan,” Valeant said.

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