MISSISSAUGA, Ontario ( TheStreet) -- Canada's Valeant Pharmaceuticals ( VRX) agreed to acquire Lithuania-based AB Sanitas for about €314 million ($442.1 million) in cash, and assume about €50 million of debt.

Sanitas is a pharmaceuticals company with a generics portfolio of 390 products in nine countries throughout Central and Eastern Europe, primarily Poland, Russia and Lithuania.

Valeant said the transaction is expected to be immediately accretive to its earnings.

"The acquisition of Sanitas should provide Valeant with an exciting opportunity to expand our European branded generics product portfolio with dermatology and hospital injectable compounds that have a strong track record of growth and profitability," said J. Michael Pearson, Valeant's chairman and CEO, in a statement Tuesday. "With 80% of the Sanitas portfolio consisting of non-reimbursed products with limited exposure to government pricing pressures, Valeant will be in a key position to continue our expansion into Central and Eastern Europe."

Valeant's move to acquire Sanitas comes on the heels of its losing out on its $5.7 billion bid to buy Cephalon ( CEPH). Israel's Teva Pharmaceutical ( TEVA) topped Valeant's bid for Cephalon.

-- Written by Joseph Woelfel

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