<article>Drug maker <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Strides+Shasun+Ltd" target="_blank">Strides Shasun Ltd</a> on Monday said it has agreed to buy controlling stakes in an Australian and a Kenyan company for $28.7 million (Rs.195 crore).</article>

Drug maker <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Strides+Shasun+Ltd" target="_blank">Strides Shasun Ltd</a> on Monday said it has agreed to buy controlling stakes in an Australian and a Kenyan company for $28.7 million (Rs.195 crore).
Strides Shasun is seeking to expand its presence in Australia and establish a toehold in East Africa through the acquisitions.
The company said it had acquired a 51% stake in Australian pharmaceutical supply and research company <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Generic+Partners+Holdings+Co.+Pty+Ltd" target="_blank">Generic Partners Holdings Co. Pty Ltd</a> in an all-cash deal involving an upfront payment of A$15 million, and a commitment of A$10 million to fund future research and development at the firm.
The stake is being acquired by Arrow Pharmaceuticals Pty Ltd, a wholly owned subsidiary of Strides, which it acquired from Johannesburg-based <a style="color: #000080;" href="http://www.dealstreetasia.com/?s=Aspen+Pharmacare+Holdings" target="_blank">Aspen Pharmacare Holdings</a> in May.
“The partnership with Generic Partners is of strategic importance to Arrow and enhances the company’s competitive abilities across the value chain in the Australian generic pharmaceutical market,” said Dennis Bastas, chief executive officer of Arrow Pharmaceuticals.
General Partners reported revenue of A$38.9 million for the year ended 30 June with adjusted earnings before interest, taxes, depreciation and amortization (Ebitda) of A$7.1 million.
The transaction is subject to statutory approvals and is expected to close by 30 April, Strides said in a statement.
“The acquisition provides immediate access to 47 commercialized marketing authorizations, making Arrow the second largest generic pharmaceutical products company in Australia with a portfolio of over 180 molecules,” the company said.
The acquisition also provides access to 22 registrations pending approval with Australian drug regulator Therapeutic Goods Administration (TGA) and a strong pipeline of 32 molecules including a host of drugs going off patent in the future, the company said.
In Australia, Generic Partner’s customer base includes the top five generic pharmaceutical companies.
Generic Partners, based in Melbourne, is focused on research and development. The company currently develops and licenses out products to customers in Australia, Europe, Canada, the US and South Africa.
Strides Shasun said it had also agreed to acquire a controlling stake in Kenya-based Universal Corp. Ltd (Universal) in an all-cash deal consisting of an initial payout of $11 million and a performance-related payout capped at $3 million for achieving Ebitda of $2.95 million for 2015.
The transaction is subject to statutory approvals and expected to be close by 30 June.
The acquisition will give Strides a foothold in the East African markets and will complement its current capacities of six plants across major geographies in Sub-Saharan Africa.
Strides has a presence in West and French Africa.
Universal earned revenue of $22.40 million for the year ended December 2015.
In the third quarter, Strides raised $167 million through a sale of shares to investors.
The company has earmarked $100 million for acquisitions and organic expansion plans for the group.
Strides on Monday posted a net profit of Rs.52 crore in the quarter ended 31 December, an increase of 175% from Rs.19 crore in the year-ago periods.
Strides merged with rival Shasun Pharmaceuticals Ltd in an all-stock transaction valued at about Rs.1,200 crore for an assured supply of drug ingredients and to generate cost savings.
The merger became effective from the second quarter.
Shares of Strides gained 0.16% to close at Rs.1,107.30 on BSE while the benchmark Sensex declined 1.34% to 24,287.42 points.
Also read:
<a style="color: #ff0000;" title="India 2015: Pharma, healthcare deals take overseas M&amp;As to 5-year high" href="http://www.dealstreetasia.com/stories/overseas-ma-deals-at-5-year-high-in-pharma-healthcare-24400/" rel="bookmark">Pharma, healthcare deals take overseas M&amp;As to 5-year high</a>
<a style="color: #ff0000;" title="India Dealbook: Strides Acrolab to raise $227m, Uniqorn invests $350K in Zakoopi" href="http://www.dealstreetasia.com/stories/india-dealbook-strides-acrolab-to-raise-227m-uniqorn-invests-350k-in-zakoopi-13855/" rel="bookmark">India Dealbook: Strides Acrolab to raise $227m, Uniqorn invests $350K in Zakoopi</a>

Strides Shasun is seeking to expand its presence in Australia and establish a toehold in East Africa through the acquisitions.

India: Drug maker Strides to buy controlling stake in Australian, Kenyan companies

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief

India: Drug maker Strides to buy controlling stake in Australian, Kenyan companies

Start your deal-making journey now!

Bring stories like this into your inbox every day.

Sign up for our newsletter - The Daily Brief