Mylan N.V. MYL announced an agreement under which it will acquire the non-sterile, topicals-focused specialty and generics business of privately held Renaissance Acquisition Holdings. Renaissance, which is majority owned by RoundTable Healthcare Partners, will however retain its sterile-focused businesses and associated manufacturing facility.Mylan has agreed to pay $950 million in cash upfront and up to $50 million in additional contingent payments. The company expects to finance the transaction using a combination of cash on hand and available borrowings under existing credit facilities.How will Mylan Benefit?The proposed Renaissance deal will give Mylan rights to a complementary portfolio of approximately 25 branded and generic topical products, an active pipeline of approximately 25 products, and an established U.S. sales and marketing infrastructure targeting dermatologists. Mylan will also gain an integrated manufacturing and development platform and a leading topicals-focused contract development and manufacturing organization.Mylan will have access to two high-quality manufacturing sites with capabilities and capacity in creams, ointments, aerosols/foams, gels, suspensions, liquids and suppositories thereby complementing Mylan's existing capabilities.The to-be-acquired business generated about $370 million in revenues in 2015 and has roughly 1,200 employees.The acquisition will also complement Mylan's pending acquisition of Swedish drug maker Meda, which also has a substantial dermatology portfolio.Meanwhile, Mylan does not expect to see the Renaissance deal to have any impact on the leverage ratio of 3.8x debt-to-adjusted EBITDA, which the company had projected taking into account the closing of the Meda transaction. The Meda acquisition is slated to close by the end of the third quarter of 2016.We believe the Renaissance deal is in line with Mylan’s strategy of strengthening its dermatology/topicals portfolio. Mylan has been constantly making acquisitions to drive growth. In Feb 2015, Mylan acquired Abbott Laboratories’ ABT non-U.S. developed markets’ specialty and branded generics business. We expect Mylan to remain active on the business development front in 2016 in order to drive long-term growth.Mylan is a Zacks Rank #3 (Hold) stock. A couple of better-ranked stocks in the health care sector are ANI Pharmaceuticals, Inc. ANIP and Retrophin, Inc. RTRX, each sporting a Zacks Rank #1 (Strong Buy).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ABBOTT LABS (ABT): Free Stock Analysis Report RETROPHIN INC (RTRX): Free Stock Analysis Report MYLAN NV (MYL): Free Stock Analysis Report ANI PHARMACEUT (ANIP): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research