LAVAL, Que. -- Valeant Pharmaceuticals (VRX.TO) expects to receive US$930 million in cash for its iNova unit, which it's selling to two fund managers that had been considered rival bidders for the prescription and over-the-counter drug business.

The buyers are funds managed by Pacific Equity Partners and The Carlyle Group, which say they plan to further grow Nova Pharmaceuticals.

iNova markets a variety of products for weight management, pain management, cardiology and the treatment of coughs and colds.

"We are very pleased to have finalized an agreement to acquire iNova. This is a strong company with great products with growth opportunities particularly in new markets," Carlyle Group managing director David Bluff said in a statement.

David Brown, managing director of Pacific Equity Partners, said the new owners intend to invest in product development, geographical expansion, marketing, staff and potential acquisitions of additional brands.

"We are now working with Valeant and the relevant regulatory authorities to close the transaction in the second half of 2017," Brown said in the joint statement with Carlyle Group.

Valeant, based in Laval, Que., says in its separate statement that it will use proceeds from the sale of iNova to repay debt.

"The sale of iNova is part of the company's ongoing efforts to both simplify our operating model and strengthen our balance sheet," said Joseph Papa, Valeant's chairman and chief executive officer.

"We will continue to evaluate opportunities that will enable us to deliver on our commitments and unlock value for shareholders."

None of the companies announced how the iNova deal will be split between the two buyers.

Analyst Douglas Miehm of RBC Dominion Securities wrote in a note to clients that the transaction appears to be positive for Valeant and suggests that further deals will follow as it works to cut US$5 billion of debt by next February.

Valeant shares were up slightly in extended trading before North American stock markets opened Thursday.