Alivira Animal Health Ltd has entered into an agreement to acquire 60 per cent stake in Provet Veterinary Products, Turkey, for an undisclosed amount. The acquisition, which is being routed through Alivira Animal Health Ltd, Ireland, is expected to close next month.
The current promoter of Provet will hold the remaining 40 per cent and will be a part of the management team of Alivira.
Alivira is a joint venture between Bangalore-based integrated pharma player SeQuent Scientific Ltd and Chennai-based Shasun Pharmaceuticals Ltd. Early this year, private equity firm Ascent Capital had picked up minority stake in Alivira Animal Health Ltd, which develops, manufactures and sells veterinary products, including active pharmaceutical ingredients (API) and formulations in the global market.
Commenting on the development, Manish Gupta, CEO, SeQuent, said, “With a ready portfolio of over 100 formulations, largely in the difficult space of injectables and a newly established state-of-the-art facility which would soon be offered for EU GMP approval, Provet provides us the right platform to aggressively expand our veterinary formulation business in MENA and CEE regions.”
Formulations currently account for about 22 per cent of Alivira’s business. With the acquisition, this would push up to a third of its revenues with strong front-end presence in the emerging markets of India, Turkey and Africa.
Provet is set to roll out its products in new markets where Alivira is active including MENA and CEE.
Its facility in Turkey manufactures injectables, intra-mammaries, oral solutions and topicals. It would be offered for EU-GMP certification in the coming months. Provet would thereby provide a platform to Alivira for future expansion into EU, Canada and the Australian markets.
The deal also brings Alivira an access to the $400 million Turkish veterinary market, which is growing at around 8 per cent per annum, faster than the global industry growth.
Huseyin Aydin, chairman and founder, Provet, said, “I am confident that we will consolidate our position and target to be one of the top three manufacturers in Turkey. By joining forces with Alivira, Provet will be one of the leading players in the region. The plan is to expand the formulation business into new markets like Western Europe, South America and Far East.”
Provet, a privately owned enterprise, has a portfolio of around 114 pharmaceutical products, mostly injectables.
(Edited by Joby Puthuparampil Johnson)