Aanjaneya Lifecare Ltd, a Mumbai-based pharmaceutical company, has acquired Hyderabad-based Apex Drugs and Intermediaries Ltd, an integrated API and pharma intermediates manufacturing firm. The deal has been valued at Rs 250 crore, with debt of Rs 185 crore and an equity dilution of Rs 65 crore, the company has said in a statement.
The deal includes acquisition of Apex Drugs’ assets, businesses, clients, licensees and employees, as well as a merger of operations. The acquisition will enable the Mumbai firm to become an integrated formulation company and leverage Apex Drugs’ strong export relations with Asia, Europe, the UAE and Latin America. Its product portfolio will also widen as it acquires Apex Drugs’ API business of AIDS, HIV, diabetes, ACE inhibitors and CNS. Aanjaneya currently makes APIs with focus on anti-malarial and finished dosage forms and caters to various therapeutic segments.
Aanjaneya had revenues of Rs 320 crore for the year ended March 2011 and the acquisition will almost double its annual revenues. The company will have combined sales of Rs 700 crore with EBITDA of Rs 130 crore and long-term debt of Rs 220 crore. As the company has a networth of Rs 365 crore, its debt ratio will be less than 1. The company also raised Rs 117 crore through its IPO in May 2011.
The share price of Aanjaneya closed at Rs 538.45 on Thursday, down 3.82 per cent. The company is currently trading over twice its IPO price band of Rs 228-Rs 240 and hit its 52-week high of Rs 575 in trade today.