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Eris announces acquisition of Oaknet Healthcare for Rs 6,500 mn

The acquisition will be completed by way of a share purchase agreement

FPJ Web Desk | Updated on: Wednesday, May 04, 2022, 09:38 AM IST

The deal will be financed by Rs 3,000 mn of internal accruals and Rs 3,500 mn of borrowings.
/Representative image | Representational Image
The deal will be financed by Rs 3,000 mn of internal accruals and Rs 3,500 mn of borrowings. /Representative image | Representational Image
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Eris Lifesciences Limited, Indian branded formulations manufacturing company, announced its acquisition of a 100 percent stake in Mumbai-based dermatology focused domestic formulations company Oaknet Healthcare Pvt Ltd for a total consideration of Rs 6,500 million.

Deal Highlights

  • Eris will acquire 100 percent stake in Oaknet for Rs 6,500 million

  • The acquisition will be completed by way of a share purchase agreement as a result of which Oaknet will become a wholly owned subsidiary of Eris

  • The deal will be financed by Rs 3,000 million of internal accruals and Rs 3,500 million of borrowings.

With a revenue base of Rs 1,950 million in FY22, Oaknet brings a portfolio of brands in Dermatology and Women’s Health to the Eris stable. Eris’ Specialty Franchise will get a significant impetus with this acquisition with Eris now present in 87 percent of the Rs 55,000 crore Chronic Market, with a leading presence in the major chronic therapies in the IPM – Cardiology, Oral diabetes care, Insulin, Neuro/CNS and Dermatology. Oaknet has near 100 percent coverage of approx. 11,000 dermatologists across India with a 60 percent penetration and has a pan-India sales and distribution presence.

Commenting on the acquisition, Amit Bakshi, Chairman and Managing Director of Eris Lifesciences Ltd., said, “As Oaknet becomes part of the Eris Group, it provides us with a robust growth platform in the areas of Dermatoloy and Cosmetology. In line with Strides and Zomelis acquisitions, we are confident that the Oaknet transaction will create long-term value for our shareholders.”

Krishnakumar V, Executive Director & Chief Operating Officer of Eris Lifesciences Ltd., added, “The acquisition of Oaknet brings marquee brands like Cosvate and Cosmelite into the Eris portfolio. We expect to bring to bear multiple value creation levers including in-house manufacturing, new product launches, expansion of field force productivity and enhancement of operational efficiency.”

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Published on: Wednesday, May 04, 2022, 09:35 AM IST