Aanjaneya Lifecare Limited, a Rs.320 crore plus Mumbai-based pharma company, has acquired Hyderabad-based integrated API and pharma intermediates manufacturing company, Apex Drugs and Intermediates Ltd (ADIL) for a total consideration of Rs.250 crore (with debt of Rs.185 crore and equity dilution of Rs.65 crore).
Aanjaneya Lifecare Ltd has acquired ADIL’s assets, businesses, clients, licensees, employees and has merged both the companies’ operations, becoming a fully integrated formulation company. The company will also leverage the strong relations of ADIL developed in Asia, Europe, UAE & Latin America for exports. The acquisition also gives Aanjaneya an entry in Hyderabad market.
Commenting on the acquisition of Apex Drugs and Intermediates, Dr Kannan Vishwanath, vice chairman and managing director of Aanjaneya Lifecare Ltd said,” We are very pleased to announce the acquisition of Apex Drugs and Intermediates Ltd (ADIL).It will reduce the company’s dependence on third parties for pricing and supply to a large extent. Going further the company also plans to enter into lifestyle segment. The acquisition will not only strengthen Aanjaneya Lifecare’s presence in the Hyderabad market but would also expand its stronger growth footprint in their market”.
Post acquisition Aanjaneya Lifecare will have approximate sales of Rs.700 crores with EBITDA of Rs.130 crore and total long term debt in books of about Rs.220 crore against net worth of Rs.365 crore. (The company’s debt to equity ratio would be less than 1). In monetary terms, Aanjaneya Lifecare can sell 40 per cent of the APIs into formulations and formulation sales would be three times the API sales.
The acquisition would widen the footprints of the company through its easy access to the product portfolio of ADIL and enable it to cross–sell the products to ADIL’s customer base. The product portfolio of Aanjaneya Lifecare will be widened by ADIL’s API business of Aids, HIV, diabetes, Ace inhibitors and CNS. The acquisition has saved time that would have taken 3-4 years time to secure clearances.
Aanjaneya Lifecare with its strong presence in API and formulation business, the company in future also plans to expand its product portfolio to lifestyle segment. This will enable the company to have diversified product portfolio which will help it to become a fully integrated formulation company.