Diversified business conglomerate Piramal Enterprises Ltd is all set to acquire UK’s Coldstream Laboratories Inc from University of Kentucky for around $30.65 million, as per a stock market disclosed.
Of the total amount, $5.65 million would be utilised towards the Coldstream facility on the Research Park Campus of the University and the rest to acquire the company’s shares, it added.
The proposed acquisition is, however, subject to corporate approvals but is expected to be completed by the end of this week. The transaction, however, is not subject to any regulatory approvals.
Coldstream is a Contract Development and Manufacturing Organisation (CDMO) focused on the development and manufacturing of sterile injectable products and is majority owned by University of Kentucky Research Foundation (an affiliate of the University of Kentucky). The company operates from a FDA approved facility located in Lexington, Kentucky, the US.
The acquisition will help Piramal Enterprises move further into the injectable market segment and has a strong synergy with its existing pharma solutions business.
This comes within months of the firm shutting down its Mumbai-based R&D unit which was involved in drug discovery.
In 2012 it had acquired US-based database and consulting services provider Decision Resources Group (DRG) for Rs 3,400 crore ($635 million) in an all-cash deal from private equity major Providence Equity Partners. It had also acquired UK’s integrated market access service provider Abacus International the same year.
A year before in 2011, it had also acquired the assets of BioSyntech.
Shares of Piramal Enterprises were trading at Rs 847, up 1.77 per share at 1:41 PM on Friday from their previous close on the BSE in flat Mumbai market.
(Edited by Joby Puthuparampil Johnson)