In a $4 billion all-share transaction, SPL i.e. Sun Pharmaceutical Industries to buy 100 percent of Ranbaxy Laboratories. Total equity value of $ 3.2 billion and a net debt of $ 800 million on Ranbaxy’s books will also be a part of the transaction and it is expected to close by December 2014 . It has been approved by the Board of Directors of both companies and Daiichi Sankyo which holds 63.4 percent in Ranbaxy.
This acquisition will lead to a combined entity which is going to have operations in 65 countries, 47 manufacturing facilities across 5 continents and a swathe of specialty and generics products including 629 ANDAs (Abbreviated new drug applications) becoming the 5th largest specialty generics company in the world, largest pharmaceutical company in India with leadership in 13 specialty segments, largest Indian pharma company in USA with over $2 billion sales and a pipeline of 184 ANDAs.
As both companies share similar ambitions to grow globally with complementary strengths, this will be a landmark transaction. The combined entity’s revenues are estimated at US $ 4.2 billion with operating profit of US $1.2 billion for 2013.
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