Strides to sell Agila Specialties to Mylan
Bangalore, Feb 28 (IBNS): Strides Arcolab Limited, a global pharmaceutical company, on Thursday announced that it has entered into a definitive agreement for the sale of its specialties subsidiary, Agila Specialties Private Limited, and simultaneously its overseas specialties subsidiary, Agila Specialties Asia Pte. Limited, Singapore, has entered into a definitive agreement for the sale of its subsidiaries to Mylan Inc.
Under the terms of the agreement, Strides and its subsidiary will receive an aggregate sum of US$1,600 million in cash on closing and a potential additional consideration of up to US$250 million subject to the satisfaction of certain conditions by Strides.
As announced simultaneously, the division recorded sales of US$255 million and EBITDA of US$86 million for the historical year ended 31 December, 2012.
The transaction has been independently approved by the respective Board of Directors of Strides and Mylan.
The agreement to sell Agila Specialties Asia Pte. Limited, Singapore, has been independently approved by the respective Board of Directors of Agila Specialties Asia Pte. Limited and Mylan.
Following successful closing of the transaction, Strides proposes to utilise proceeds towards, inter alia, retiring debt, providing a pre-tax return of approximately US$700 million to US$800 million to shareholders, and costs related to the satisfaction of contingent conditions.
Headquartered in Bangalore, India, Agila is a leading global speciality injectables business focused on key domains including oncolytics, penems, penicillin, cephalosporins and ophthalmics in India and overseas.
Agila operates from nine world-class global manufacturing facilities, including one of the largest sterile capacities in India and amongst the largest lyophilisation capacities in the world.
Headquartered in Pittsburgh, Pennsylvania, USA, Mylan is a global pharmaceutical company with a growing portfolio of more than 1,100 generic pharmaceuticals and several brand medications.
In addition, it offers a wide range of antiretroviral therapies and operates one of the largest active pharmaceutical ingredient manufacturers. The company currently markets products in approximately 140 countries and territories and employs a workforce of more than 20,000 people.
Strides will continue to operate and develop its Pharma business and front-end businesses in India and Africa. Strides will also focus on developing a fully integrated Biotech business which will be fully funded post this transaction.
Commenting on the transaction, Arun Kumar, Executive Vice Chairman and Group CEO of Strides Arcolab, said: "The sale of Agila demonstrates our commitment to maximising value to our shareholders. Our investments in the business, together with the operational excellence of our employees, have led to the creation a global, high-quality specialty injectables business with an industry-leading pipeline and best-in-class infrastructure."
V.S. Iyer, CEO of Agila Specialties, said "This transaction is an endorsement of the world-class capabilities the Agila team has created and serves as a perfect bolt-on strategy for the future of Agila and its employees."
Heather Bresch, CEO of Mylan, said: "The addition of Agila to Mylan's existing injectables platform will immediately create a new, powerful global leader in this fast-growing, attractive market segment and accelerate our target of becoming a top-three global player in injectables."
The transaction is subject to customary conditions, including receipt of required regulatory approvals.
Jefferies International Limited is acting as sole financial advisor to Strides Arcolab. Herbert Smith Freehills LLP is acting as lead international counsel, supported by DSK Legal, Haynes and Boone, LLP, and Pinheiro Neto Advogados.
No comments yet! Be the first one to leave a comment.
|Hyderabad December 07/2012 : Young girls and women sell colourful baloons at Chandrayangutta here on Friday. Although some of the young girls deserve|
|The Staff of Commissioner's Task Force, West Zone Team apprehended one persons beside the gate of Seven Tombs, Golconda, Hyderabad today i.e. on 23-01|
|New Delhi, Sept 2: Making a case for freeing the sugar sector from government controls, Food and Agriculture Minister Sharad Pawar on Thursday met the|
|May 3/2013 : Owners and salespersons at Souk Al-Shamal, a market in the northern part of the Kingdom's capital, say they have been making much less m|
|Hyderabad, June 12: In spite of the Chief Minister, Mr N. Kiran Kumar Reddy, recently assuring that the 200-crore Nims University Campus (Bibinagar pr|
|New Delhi, Apr 7 : With a view to further intensify the race in India's super premium car segment which is growing at around 30 per cent every year,|
|The Staff of Commissioner's Task Force, West Zone Team apprehended two persons Near B.K. Guda Park, S.R.Nagar, Hyderabad today i.e. on 15-10-2012 who|
|Mumbai, Oct 18 (IBNS): Mobile handset maker Spice Group announced its strategic partnership with Huawei, a leading global information, communication a|
|By Basvatarakam Indo American Cancer Hospital & Research Institute
Hyderabad 16th May (QSA) For the first time in Andhra Pradesh, Basavatarak
|Hyderabad April 09/2012 (Hyderabad Deccan News) : M.Sarveshwar Reddy, OSD, (under suspension) and Talari Anantharam, District Registrar (Retired) who|
|By: Faisal Saif- Suraj Laheru is a renowned painter and art gallery owner who is in the field of art from last 16 years. He has traveled all around th|
|Hyderabad February 01/2012 (Hyderabad Deccan News) : The sleuths of Commissioner's Task Force, West Zone Team apprehended two persons Near B.K. Guda P|
More Business News