Eris Lifesciences on Wednesday said it has acquired Mumbai-based dermatology-focused domestic formulations company Oaknet Healthcare for Rs 650 crore.
The acquisition will be completed by way of a share purchase agreement and accordingly Oaknet will become a wholly-owned subsidiary of Eris, the drug firm said in a statement.
The deal will be financed by Rs 300 crore internal accruals and Rs 350 crore by borrowings, it added.
Eris Lifesciences Chairman & Managing Director Amit Bakshi noted that Oaknet provides the company with a robust growth platform in the areas of dermatology and cosmetology.
"In line with Strides and Zomelis acquisitions, we are confident that the Oaknet transaction will create long-term value for our shareholders,” he added.
With a revenue base of Rs 195 crore in FY22, Oaknet brings a well-established portfolio of leading brands in dermatology and women’s health to the Eris stable, the drug firm said.
Oaknet has near 100 per cent coverage of around 11,000 dermatologists across the country, it added.
"The acquisition of Oaknet brings marquee brands like Cosvate and Cosmelite into the Eris portfolio. We expect to bring multiple value creation levers including in-house manufacturing, new product launches, expansion of field force productivity and enhancement of operational efficiency,” Eris Lifesciences Executive Director & Chief Operating Officer Krishnakumar V stated.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
