Jubilant Organosys Limited, a leading custom research and manufacturing services (CRAMS) & API Company, has announced the acquisition of 80 per cent equity stake of the Belgium-based Pharmaceutical Services Incorporated NV and PSI Supply NV (both companies collectively referred to as 'PSI'). The company will acquire the equity stake by paying Rs 75 crore in cash.

Shyam S Bhartia, chairman & managing director of Jubilant Organosys said, "The acquisition of PSI furthers our endeavours to strengthen the position in the global pharma business and facilitate Jubilant's entry into wide range of formulated products. The European continent is an emerging market for generic products and through this acquisition we seek to rapidly establish a firm presence in this region, which we believe, presents high growth opportunities."

PSI has an attractive portfolio of 19 dossiers with 31 more at different stages of filing and development. The company also has entered into various long-term supply contracts for the dossiers and generic drugs.

PSI comes with an attractive financial and operating status and the acquisition will be accretive to Jubilant's performance. PSI has recorded sales of Rs 53 crore and EBITDA of Rs 15.6 crore during the year ended March 2004.

With this acquisition Jubilant will now have presence across the pharmaceuticals value chain from manufacturing of API's to sale of formulated products.