Strides Arcolab has completed a series of divestment and acquisitions to rearrange its business on three specific business segments. These include manufacture and R&D, international front-ended business - generics, brands and nutraceuticals business
In order to complete the process of rearrangements, Strides further to the announcement made in November 2007 & March 2008, has agreed to cede controlling interest in the Latam Operations to Aspen. It will now hold 49 per cent equity in the company for a transition period until 30 June 2009 when Strides intends to sell the remaining 49 per cent to Aspen in a pre-arranged multiple of EBITDA.
The transfer of controlling interests values the Latam business at US$ 280 million. The effective sale consideration for the entire share capital of the Latam Operations will amount to 9.32 times the EBITDA up to US$11.94 million plus 11.18 times the EBITDA over US$11.94 million.
As part of its continuous effort to concentrate and strengthen the core business, the non-core fermentation business in Italy will be divested in favour of PI Drugs and Pharmaceuticals. This divestment will enable company to cut down operating losses of over USD 10.00 million per annum in this business.
Arun Kumar, vice-chairman and Group CEO of Strides said that consequent of these changes and with Integration of Ascent Pharmahealth Business in Australia (erstwhile Genepharm) into the Group, Strides has strongly positioned itself to accelerate growth led by a global manufacturing strategy strongly backed by R&D that includes licensing agreement with key partners on a global basis. The company recently announced a significant transaction with GSK in partnership with Aspen for the emerging markets.
The company recently completed a majority ownership transaction in Ascent Pharmahealth [erstwhile Genepharm] Australia.
It will develop an ethical branded and nutraceutical strategy in emerging markets mainly in India and Africa through the Grandix label.
Strides, has 16 manufacturing plants spread across the Brazil, Mexico, Italy, Poland, Singapore and India. This broad manufacturing network facilitates partnering with global procurement organizations to European and American pharmaceutical multinationals and also private labellers and distribution chains.