Mylan NV (NASDAQ:MYL) announced that they will be buying Renaissance Acquisition Holdings LLC’s topical-focused specialty and generics business. The acquisition will go for around $1 billion – with $950 million to be paid upfront and an additional $50 million, subject to customary adjustments, will be made over an undisclosed period of time. The deal is expected be finalized by the end of the third quarter.

With the acquisition, Mylan is expected to add to its portfolio around 25 branded and generic topical products, 25 more products in the pipeline and Renaissance’s US sales and marketing infrastructure. According to Heather Bresch, Mylan’s CEO, they have been setting their eyes on diversification and expanding in the dermatology/topicals area. On the other hand, Renaissance will continue to concentrate on their sterile-focused business and its manufacturing facility.

Last February, Mylan also announced their plans to acquire Meda AB, a Swedish pharmaceutical company. The deal, which was valued at $7.2 billion, has still not yet been finalized. Meda’s substantial dermatology business will be complementary to the Renaissance acquisition and Mylan’s existing assets, according to Bresch.

Moreover, Bresch also disclosed that the deal with Renaissance will have no effect on the company’s projected debt ratio. Even with the pending transaction with Meda, they will still not need additional financing since they will be using their cash on hand and existing credit facilities where they have available borrowings.

Last year alone, Renaissance’s topical division recorded sales of $370 million. The unit also employs around 1,200 employees and has an integrated operating platform that includes two high-quality manufacturing sites. These sites are capable of producing creams, gels, suspensions, ointments, aerosols/foams, liquids and suppositories and are seen to complement Mylan’s existing capabilities.

At the beginning of May, Mylan announced their first quarter earnings. Their net income came in at $13.9 million and recorded profits of 3 cents per share. Adjusted earnings were at 76 cents per share, just a cent higher than analyst’s projections of 75 cents. However, their revenue was lower than the expected $2.26 billion. They only posted a revenue of $2.19 billion.  The company is expecting their 2016 earnings to be at around $4.85 to $5.15 and their revenue to be around $10.5 billion to $11.5 billion.

Mylan’s stocks have declined by 41% for the past year. Since the beginning of the year, their shares have decreased by 21% as well.