Piramal Healthcare Limited, one of India's largest pharmaceutical and healthcare companies, has acquired the entire issued outstanding capital stock of RxElite Holdings, the wholly-owned subsidiary and the inhalation anaesthetic gas distribution RxElite for cash consideration of approximately $4.2 million. In addition, the Holdings retained approximately $3.2 million of outstanding indebtedness. A significant portion of the net proceeds from the sale will be used by RxElite to retire a portion of its long term debt.
The acquisition gives Piramal ownership of Holdings' sales and distribution network in the US and complements Piramal's pending acquisition of inhalation anaesthetic gas manufacturer Minrad International Inc., announced in December 2008, which is awaiting the approval of stockholders of Minrad. Holdings' customers include hospitals and hospital group purchasing organizations, national and regional wholesalers, outpatient surgery centres and ambulatory care clinics.
Piramal's acquisition of Holdings includes approximately 2,800 vaporizers required for administration of the inhalation of anaesthetic gas, of which 2,300 are installed at various customer locations. Piramal will continue the employment of Holdings' current sales and marketing specialists, as well as key administration personnel.
RxElite, Inc is a speciality pharmaceutical company that develops and markets generic prescription drug products in specialty generic markets. RxElite also operates an Israeli subsidiary that manufactures and markets complex active pharmaceutical ingredients and provides research and development services to pharmaceutical companies throughout the world.