This is the second major business that Ajay Piramal-owned Piramal Healthcare has divested in recent months.
Piramal Healthcare Limited has announced that Super Religare Laboratories Limited (SRL) will acquire its subsidiary Piramal Diagnostic Services Private Limited in a deal valued at Rs 600 crore.
VCCircle first reported on this proposed deal on July 10.
This deal involves an upfront payment of Rs 300 crore and the balance to be paid over three years.
Piramal Diagnostic provides pathology and radiology services through a network of 107 laboratories with FY10 revenue of over Rs 200 crore. Following this deal, Super Religare will have the largest network of pathology and radiology centres. Piramal will continue to be involved in the business including by way of representation on the Board of Directors and the Executive Committee of SRL.
Only in May, Piramal Healthcare sold its domestic formalations business to NYSE-listed pharma major Abbott Labs for an up-front payment of $2.12 billion, plus $400 million annually for the next four years.
Post the Abbott deal, Piramal now retains businesses such as custom manufacturing, critical care, over the counter consumer products, manufacture and supply of active pharmaceutical ingredients (API), vitamin and fine chemicals.
Ajay Piramal, Chairman, Piramal Group said, “PDSL’s network comprises of doctors of great repute and committed professionals who have built this business over the past decade. We feel it is the right time to take the business to the next level and this development will give it the scale and size to serve a much larger base of Indian customers
with a high level of quality and care. This combination will go a long way in changing the diagnostic services landscape of not just India but also the Asia region.”
The combined entity will have 170 laboratories and 1,500 collection centres and will serve over 12 million customers annually. SRL’s reach, brand recognition coupled with strong experience in managing hospital’s implant labs will be complemented by PDSL’s strong processes and systems, highly regarded pool of doctors and a robust, integrated service model covering both – pathology and radiology, said the Piramal company statement.
Shivinder Mohan Singh, Promoter of SRL Ltd, said, “We are very excited with this move as Piramal’s strong talent pool, and integrated business model of pathology and radiology will add to our existing market leading position. This combination creates one of the largest and best in class service providers not just in India but also Asia, given our existing presence and relationships in the Middle East and SAARC countries. We believe this winning strategic combination will further enhance our platter of offerings and deliver superlative value and choice to our growing customer base.”