Strides Arcolab Ltd and Haw Par Healthcare, Singapore have entered into a share purchase agreement, which provides for Strides Singapore Pte Ltd (an indirect wholly owned subsidiary of the company) to acquire 100 per cent of Drug Houses of Australia (Asia) Pvt Ltd., Singapore (DHA) for a consideration of approximately Singapore $ 19.7 million, which was arrived at on a willing-buyer and willing-seller basis. Transaction is subject to customary closing conditions and is expect to complete within September 2006.
Commenting on the acquisition Arun Kumar, vice chairman and managing director of the company said "The signing of the share purchase agreement with Haw Par Healthcare is the key strategic initiative for Strides to continue to grow through regional strategies alongside global partnerships."
Established in 1969, DHA is one of the largest generics pharmaceutical manufacturer in Singapore. It is also an important pharma player in Malaysia and Hong Kong amongst other markets. For the financial year ended December 2005, DHA posted sales revenue of S$ 16.36 million and PAT of S$ 2.72 million.
DHA has a GMP certified manufacturing facility in Jurong, the industrial heartland of Singapore which manufactures a range of pharmaceutical products.
DHA is a wholly owned subsidiary of Haw Par Healthcare Ltd (Haw Par Healthcare) and is a leading player of branded generic pharmaceutical products in Singapore with presence in Malaysia and Hong Kong. DHA will spearhead Strides AsiaPac and China entry strategies and offers an excellent opportunity to create a regional brand in Asia and China In the long term.