In its fourth and largest acquisition in the last 18 months, Ahmedabad-based Eris Lifesciences Ltd has acquired Strides Shasun Ltd‘s India branded generics business for a cash consideration of Rs 500 crore ($77 million).
Strides’ India branded generics business comprises a portfolio of over 130 brands in the domains of neurology, psychiatry, nutraceuticals, gastro among others, along with the employees in the business. This business had sales of Rs 181 crore in 2016-17.
“Eris will acquire the marketing and distribution rights for the said portfolio of products in India while Strides will retain the global rights for these products,” the two companies said in a joint statement.
The transaction is scheduled to be close by November 30, 2017.
Bengaluru-based Shasun Strides plans to use the funds to re-pay its debt of around Rs 400 crore ($61.5 million).
“This transaction is the outcome of our portfolio reprioritization, to focus more sharply on larger regulated markets. We retain global rights for the divested portfolio, which have significant sales in Africa and will continue to grow our emerging market business,” said Shashank Sinha, Managing Director of Strides Shasun.
For Strides, MAPE Advisory Group and Tatva Legal acted as the transaction advisor and legal advisor respectively.
EY India was the exclusive M&A advisor and Shardul Amarchand Mangaldas & Co was the legal advisor to Eris Lifesciences on this transaction.
Founded in 2007, drugs manufacturer Eris Lifesiences debuted on the stock exchanges in June this year, where in its founders and other shareholders sold stoke. Private equity major ChrysCapital sold its entire 16.25 per cent stake through the IPO.
It recently acquired utraceuticals maker UTH Healthcare Ltd for Rs 12.85 crore ($1.96 million). In August 2016, it had signed a pact with Amay Pharmacuticals Pvt. Ltd to acquire trademarks of 40 brands for Rs 32.87 crore. After which, in December last year Eris had increased its stake in Kinedex Healthcare Pvt. Ltd 75.48 per cent from from 61.48 per cent.