Generis acquisition

Hyderabad-based Aurobindo Pharma (BSE: 524804 and NSE: AUROPHARMA) said it has signed an agreement, through a subsidiary, to acquire Portugal’s Generis Farmaceutica SA from Magnum Capital Partners.

The binding agreement through Agile Pharma BV Netherlands to acquire Generis Farmaceutica for a total consideration of €135 million. It was announced on Jan 7, 2017.

The acquisition deal includes the Generis’s manufacturing facility in Amadora, Portugal which has a capacity to produce 1.2 billion tablets/capsules/sachets annually. Generis produces and sells pharma products in Portugal.

The deal consolidates Aurobindo’s footprint in Portugal, which currently consists of Aurovitas, Unipessoal LDA and Aurobindo Pharma (Portugal), Unipessoal Limitada.

The consolidated APL group will rank #1 in the Portuguese generic pharma market, and will have the largest generic product portfolio consisting of 271 products.

Management estimates that the net sales for the acquired business will be approximately €72 million in 2017, compared to €64.8mn in 2016. Adjusted EBITDA estimate for 2016 is €12.7mn which is projected to improve to €15.8mn EBITDA in 2017.

Synergies from Aurobindo’s vertical integration and pipeline breadth, improvement in Amadora plant capacity utilisation by servicing both local and European markets.

Aurobindo has been steadily expanding its European footprint since 2006, via acquisitions across several key markets, most notably in 2014 with the acquisition of Actavis’s commercial operations in seven Western European countries.

“The acquisition of Generis, thus, builds upon an already successful growth strategy,” said the company in a statement. fii-news.com