LAVAL --Valeant Pharmaceuticals Inc. has confirmed it's buying Bausch + Lomb Holdings in a US$8.7-billion cash deal that will boost the Canadian drug maker's presence in the eye-care sector.

The Montreal-area company, based in Laval, Que. will hire some of Bausch + Lomb's senior executives to the U.S.-based global business, which is best known for its contact lenses and solutions.

Bausch + Lomb's chief medical officer, Dr. Calvin Roberts, will join Valeant in a similar role as will Dan Wechsler, who will become a Valeant executive vice-president and group chairman of ophthalmology and eye health.

Valeant said it expects additional members of the Bausch + Lomb management team will join later.

"We are excited to announce the acquisition of Bausch + Lomb, which will transform Valeant into a global leader in eye health by significantly strengthening our capabilities in ophthalmic pharmaceuticals, contact lenses and lens care products, and ophthalmic surgical devices and instruments," Michael Pearson, Valeant's chairman and chief executive said in Monday's announcement.

"Bausch + Lomb's world-renowned brand, comprehensive portfolio of leading eye care products, and promising late stage pipeline are an ideal strategic fit for our current ophthalmology business and we are strongly committed to continuing to build a sustainable eye health business."

Brent Saunders, the chief executive of Bausch + Lomb, said the companies share a commitment to providing innovative, high-quality products and service.

"I am confident that under their stewardship, the Bausch + Lomb brand will continue to stand for excellence and innovation in eye health," Saunders said.

Saunders will be an advisor to Valeant after the deal closes and Fred Hassan, who is chairman of Bausch + Lomb's board of directors, will join the Valeant board.

There were reports last week that a deal was in the works and the companies announced jointly on Monday that the boards of the two companies have unanimously approved the deal.

About half the purchase price will be used to repay Bausch + Lomb's outstanding debt and $4.5 billion will go to an investor group led by Warburg Pincus, which bought the company in 2007.

Valeant Pharmaceuticals shares hit an all-time high Friday after reports of the deal surfaced. The stock hit $90.17 before closing at $87.02, up $10.18 or 13.25 per cent Friday on the Toronto Stock Exchange.

Valeant, which is Canada's largest publicly traded pharmaceutical company, manufactures and sells a broad range of drugs primarily in the areas of dermatology, neurology and branded generics.

Analyst David Krempa of Morningstar said last week that Valeant has been talking for about a year about wanting to get into the ophthalmology market.

The acquisition will put Valeant in competition with established players like Novartis, Allergan, and Johnson & Johnson, which lead Bausch & Lomb in most product categories, he said.

Valeant attempted to purchase Ista Pharmaceuticals in early 2012, but was outbid by Bausch & Lomb. It acquired EyeTech in February 2012 for an undisclosed price and then bought the Visudyne product line from QLT Inc. in late 2012 for a little more than $100 million.