Nicholas Piramal India Ltd has acquired Avecia Pharmaceuticals, UK for a consideration of GBP 9.5 million. The consideration is inclusive of funding the business' UK pension fund deficit of between GBP 8-9 million. The transaction completion is subject to required regulatory and other approvals, stated a company release here.

This acquisition is the company's second M&A transaction in the UK after its acquisition of Rhodia's Inhalation Anaesthetics business in December 2004. The transaction is in the nature of a share purchase on a liabilities and cash-free basis. It includes working capital of GBP 8.8 million.

Avecia Pharmaceuticals is a global custom manufacturing player focused on providing custom chemical synthesis and manufacturing services for the innovator pharmaceutical and biotechnology companies. It had consolidated Sales of GBP 36.1 million (Rs 2.9 billion) in 2004. The business includes early/late-stage and launched manufacturing assets in UK and North America, a deep pipeline of products backed by strong customer relationships and a mix of unique technologies, said the release.

Avecia Pharmaceuticals is part of the UK-based Avecia Group. Private equity funds managed by Cinven and Investcorp International acquired Avecia Group from AstraZeneca in 1999. The acquisition of Avecia Pharmaceuticals marks the start of a new wave of restructuring within the Global Custom Manufacturing Industry.

According to the company release, this transaction is the first step in the Company's strategy of establishing such a winning global footprint for its Custom Manufacturing business. The reconfigured asset base will include access to leading early phase assets, including nearly 100 early-phase and launched products.

Avecia Pharmaceuticals comprises the business entities—Avecia Pharmaceuticals Ltd; Torcan Chemical Ltd; 25% ownership of Reaxa Ltd.