Bajaj Healthcare on Wednesday said it will acquire several stressed assets, including land and factory building, in Maharashtra and Gujarat from Saraswat Cooperative Bank for Rs 61 crore.
The company has agreed to acquire stressed assets from Saraswat Cooperative Bank by way of cash consideration of Rs 61 crore subject to closing adjustments, Bajaj Healthcare said in a regulatory filing.
The company is buying land and factory building at Tarapur industrial area in Palghar district of Maharashtra.
Besides, the company will acquire two vacant flats at Jogeshwari (East) in Mumbai.
Further, Bajaj said it will buy vacant industrial land at Dahej in Gujarat.
The targeted assets have installed capacity of 111 metric tonnes per month and are capable of manufacturing bulk drugs and active pharmaceutical ingredients (API) like mefenamic acid, artemether, lumefranrine, aceclofenac albendazole and nimesulide.
These APIs are used in pain management, tapeworm infection and anti malarial drugs.
"The existing product portfolios of these assets are highly complementary to the current priorities and future focus of the company. This transaction will enable the company to access additional portfolio opportunities going forward," Bajaj Healthcare said.
The company believes that this acquisition will be profitable in long term through a combination of top line growth, margin accretive and building newer synergies and consolidation of its presence in the local API market, it added.The transaction is expected to close by October this year, Bajaj Healthcare said.