Strides Arcolab has entered into an agreement with Bafna Pharmaceuticals to acquire majority stake of their India Branded Generics Business for a cash consideration of Rs 48.10 crore. The transaction is expected to close by end of September 2014 and is subject to customary closing conditions and statutory approvals. The India Branded Generics Business of Bafna is valued (Enterprise value) at Rs 65 crore and it will entirely be transferred to an SPV, in which Strides will hold 74%.
Strides will pay a consideration of Rs 48.10 crore in cash to Bafna and balance as 26% equity participation in the SPV. The IPs and manpower will be transferred to the SPV as part of the business transfer. Bafna will continue to manufacture these products for the SPV and the SPV will have global rights for Raricap brand.
Raricap, the flagship brand of Bafna, is the 8th largest in oral Haematinic segment in India with 8 SKU’s in oral an liquid forms with an annual revenue of Rs 20 crore. Raricap was acquired by Bafna from Johnson & Johnson in the year 2011 and has grown at CAGR of 64% in last 3 years.
Company Name | CMP |
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Sun Pharma Inds. | 1502.30 |
Dr. Reddys Lab | 6198.90 |
Cipla | 1402.20 |
Zydus Lifesciences | 957.00 |
Lupin | 1645.00 |
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