Vivimed Labs, a niche Specialty Chemicals and Pharmaceuticals Company, has signed a definitive agreement for the transfer and sale of identified products along with their associated trademarks and assets within the Speciality Chemicals division, subject to requisite regulatory, statutory and shareholders' approvals. As part of this transaction, the Company will divest certain products within its specialty chemicals portfolio to Clariant Chemicals (India), a subsidiary of world's leading speciality chemical company,Clariant AG of Switzerland. The transaction values the identified product lines at an enterprise value of Rs 380 crore.
The potential transaction was taken on board and forwarded for shareholders' approval in a meeting of the Board of Directors of Vivimed held on September 12, 2015. The part of the Speciality Chemicals division's business, which is proposed to be divested, accounted for about 10% of the consolidated revenue from operations in FY2015. A major portion of the receipts will be used to reduce debts thereby saving substantial interest costs going forward. Furthermore, it will provide increased financial flexibility to pursue profitable growth across both its business segments with focus on growing Pharmaceutical API and finished Dosage forms businesses in regulated markets.
Vivimed Labs is a listed company engaged in the business of manufacturing products (active ingredients, formulations, etc) for pharmaceutical, personal care and colour chemistry industry. VLL (Consolidated) has manufacturing facilities in India and Overseas.
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