Indian pharma player Eris Lifesciences Ltd. said that the compay has expanded its sterile injectables footprint through the acquisition of 51 percent equity stake in Swiss Parenterals Ltd. for a consideration of Rs 637.50 crore.
This deal also marks the entry of Eris into the RoW Export Markets.
The acquisition of Swiss Parenterals will help us strengthen our India footprint through the launch of a domestic Injectables-focused Branded Formulations business. Besides, the emerging markets focus of Swiss Parenterals complements our India focus very well," said Amit Bakshi, Chairman & Managing Director of Eris Lifesciences Ltd. in a press statement.
Eris’ Promoter group will concurrently acquire an additional 19 percent in Swiss for Rs 237.50, thereby bringing the total equity stake of Eris and its Promoter Group in SPL to 70 percent. Out of the deal consideration of Rs 637.50 crore for Eris’ 51 percent stake, Rs 200 crore will be paid at close of the deal and the remainder will be paid 12 months from close of the deal.
The company expects the deal to be completed by March 31, 2024.
The deal consists of cash consideration as well as issuance of 43,750
Secured Redeemable Non-Convertible Debentures at 8 percent.
Swiss Parenterals had a turnover of Rs 280.30 crore in FY 22-23. Swiss Parenterals was founded in 1997 and is a leading player in the sterile injectables business in 80+ emerging markets across Africa, the Asia Pacific and Latin America.
It has two facilities in Gujarat capable of manufacturing a wide range of sterile injectable formulations; these facilities are accredited by 50+ regulatory authorities worldwide including the EU-GMP, Brazilian Anvisa, Mexican Cofepris and the Australian TGA.
"In addition to investing to grow the Swiss Parenterals business further, we will kickstart exports of Oral solid dosage formulations from Eris’ manufacturing facilities to various semi-regulated markets by leveraging Swiss’ overseas distribution channels and regulatory expertise," he added.
Eris Lifesciences reported a 0.8 percent rise in consolidated net profit of Rs 102.7 crore for the December quarter of fiscal, as against Rs 101.9 crore recorded a year ago.
Revenue came in at Rs 486.3 crore, up 14.9 percent from Rs 423.3 crore last year, the company said on February 13.
The company's earnings before interest, taxes, depreciation and amortization (EBITDA) came in at Rs 175.5 crore, up 27.9 percent from Rs 137.2 crore in the year-ago period. The EBITDA margin was at36 percent against 32.4 percent in the year-ago period.
The company had acquired nephrology and dermatology brands from Biocon Biologics in November 2023 for Rs 366 crore.
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