Aurobindo Pharma said on Saturday that it acquired Generis Farmaceutica SA through its wholly owned subsidiary Agile Pharma BV Netherlands from private equity firm Magnum Capital Partners for approximately Rs 970 crore (135 million euros) in an all-cash deal.
Portugal-based Generis, which is engaged in the manufacture and sale of pharmaceutical products, had reported sales of 64.8 million euros in 2016. Aurobindo Pharma said it will not assume any debt as part of this acquisition.
"The acquisition includes the manufacturing facility in Amadora, Portugal, which has the capacity to manufacture 1.2 billion tablets annually," Aurobindo Pharma said in a statement to the Bombay Stock Exchange.
The Indian drug maker said it estimates net sales for the acquired business will be approximately 72 million euros in 2017, compared to 64.8 million euros in 2016 and adjusted EBITDA estimate for 2016 is 12.7 million euros, which is projected to improve to 15.8 million in 2017.
The acquisition consolidates Aurobindo Pharma's footprint in the Portuguese generic pharma market and it will have the largest generic product portfolio consisting of 271 products across therapeutic areas such as cardiovascular, CNS, anti-infectives and genito-urinary systems.
"The acquisition includes a state of the art manufacturing facility based in Portugal, which will allow us to better serve both the local Portuguese market and the broader European market, particularly with regard to small volume products and also to meet timelines for low lead time tenders," said V Muralidharan, senior vice president, European operations for Aurobindo Pharma.
The closing of the transaction is conditional on obtaining necessary approvals from Portuguese authorities. Jefferies acted as sole financial advisor to Magnum Capital Partners.
The Hyderabad-based company ended 2015-16 with revenue of Rs 13,896 crore, of which Europe contributed Rs 3,130 crore or about 23 percent of total revenue.
Additionally, Aurobindo Pharma informed the BSE that the company has received final approval from the US Food and Drug Administration (USFDA) to manufacture and market Levetiracetam in Sodium Chloride injection which is used for the treatment of seizures with epilepsy. The
product will be launched this month.
The approved product had an estimated market size of $32 million for 12 months till November 2016.
On Friday, shares of Aurobindo Pharma closed at Rs 692.75, up 1.03% from their close, on the BSE.