Mumbai-based Ipca Laboratories Ltd said on Wednesday that it has entered into an agreement to acquire Ramdev Chemical Pvt. Ltd for Rs 108.5 crore ($15.5 million) in a cash deal aimed at growing its active pharmaceutical ingredients (API) business.
Palghar-based Ramdev Chemical is engaged in the business of manufacturing and marketing of advanced drug intermediates, fine chemicals and custom synthesis molecules.
Ipca said in a stock-exchange filing that the buyout will boost its products basket with the possibility of forward-integrating them with its dosage formulations business.
Incorporated in 1999, Ramdev Chemical exports its products to countries including the US, UK, Japan, Germany and Canada. Its total income stood at Rs 74.68 crore for the financial year 2017-18 while it recorded a net profit of Rs 3.6 crore.
Ipca Labs manufactures branded and generic formulations, and bulk drugs. Its investors include private equity firm ChrysCapital and multi-stage investor SAIF Partners.
The six-decade-old company had last October acquired an 80% stake in US drug marketing company Bayshore Pharmaceuticals LLC for $10.23 million (Rs 75 crore) in cash to commercialise its registered generic drugs in the US.
In 2015, the company had acquired a 19% stake in Hyderabad-headquartered Krebs Biochemicals & Industries Ltd. The year before, the company had acquired a manufacturing plant in Indore from Alpa Labs for Rs 71.71 crore ($12 million at the time).
ChrysCapital had first bought a stake in Ipca in 2013. It increased its stake in 2015.