India Dealbook: Cipla to acquire stake in South African firm; Kurl-on buys US firm

Pharma major Cipla is acquiring a 30 per cent stake in South African firm Brandmed, while Motilal Oswal PE-backed Kurl-on has bought US firm Spring Air’s operations across India, Bangladesh, Sri Lanka and Pakistan.

Cipla to acquire 30% stake in South African firm Brandmed

Drug major Cipla Ltd is acquiring a 30 per cent stake in South African healthcare firm Brandmed (Pty) Ltd for 65 million rand ($4.6 million or Rs 32 crore), according to an announcement. The deal, which is routed through Cipla’s South Africa-based subsidiary Cipla Medpro, will help the company increase its exposure to the connected healthcare segment.

Cipla Medpro is the third-largest pharmaceutical company in South Africa’s private sector. With the acquisition, the company will be able to expand its portfolio, especially in the segment of non-communicable diseases (NCDs).

“This transaction will help to transition healthcare from being reactive to a proactive and real-time monitoring model that focuses on promoting wellness instead of managing illness,” Cipla Medpro chief executive officer Paul Miller said in a statement.

Established in 2014, Brandmed offers end-to-end solutions to patients who suffer from chronic lifestyle issues and NCDs. These include ailments such as hypertension, diabetes, high cholesterol, asthma and chronic obstructive pulmonary disease.

Motilal Oswal PE-backed Kurl-on buys US firm Spring Air

Kurl-on, a mattress maker backed by Motilal Oswal Private Equity, has acquired US-based brand Spring Air’s operations across India, Bangladesh, Sri Lanka and Pakistan, the company said in a statement.

With the acquisition, the American firm’s Spring Air and Englader brand of mattresses will now be under the Kurl-on umbrella. No financial terms were disclosed.

The acquisition will help Kurl-on expand its operations across the region, besides enabling it to penetrate into the hospitality sector. Spring Air caters to a number of global hotel chains who have a substantial presence in India and its neighbouring markets.

“The acquisition will contribute to Kurl-on crossing the ₹2,000 crore revenue mark in the next two years,” said Kurl- on chairman and managing director Sudhakar Pai.

Currently, Kurl-on products are available across the country. Apart from the 102 exclusive outlets of the company, its products are available at over 7,000 multi-brand outlets and another 1,300 franchise outlets. Motilal Oswal Private Equity, its existing investor, is understood to hold over a 12 per cent stake in Kurl-on Enterprises. It invested in the company in 2015.