New Delhi : Strides Arcolab said it will acquire South Africa’s Aspen Pharmacare’s portfolio of branded and generics products in Australia for about Rs 1,910 crore.
The deal will facilitate re-entry of Strides in the Australian market. In a BSE filing Strides Arcolab said: “Strides Pharma Global Pte. Ltd and Strides (Australia) Pharma Pty Ltd, Australia, both wholly-owned subsidiaries of Strides Arcolab have signed definitive agreement with certain wholly subsidiaries of Aspen Pharmacare to acquire a generic pharmaceutical business in Australia with certain branded pharmaceutical assets.”
The business, which will operate under the Arrow Pharmaceuticals brand, will sell approximately 140 generic prescription drugs and an extensive range of non- prescription pharmacy products, Strides Arcolab said. The portfolio of Aspen’s 130 products in Australia comprises generic pharmaceutical business together with certain branded pharmaceutical assets. The company said that the acquired products has sales of Australian Dollar 120 million in the fiscal year ended June 2014.
The transaction will be financed by a combination of internal accruals and debt financing. The transaction is expected to close by end of second quarter of 2015-16.
In 2012, Strides Arcolab sold its entire stake in Australian subsidiary Ascent Pharmahealth to Watson Pharmaceuticals for 375 million Australian dollars. Strides Arcolab said this business will operate under Arrow Pharmaceutical brand.
“The Aspen Australian generic pharmaceutical assets are a valuable and unique platform for Strides to rebuild its business in Australia. Strong local management, a market leading product portfolio supported by our in-house cost effective manufacturing, will be the key ingredients of our strategy for Australia,” Founder and Group Chief Executive Officer Arun Kumar said.
Shares of Strides Arcolab ended up 8.6% at 1,188.15 rupees on the National Stock Exchange.
