Mumbai-based drugmaker SeQuent Scientific Ltd said on Monday a step-down subsidiary has agreed to acquire Turkey’s Topkim Premiks San at an enterprise value of about $7.2 million (Rs 47 crore) to strengthen its animal healthcare business.
The acquisition will be made through Provet Veterinary Products, a unit of SeQuent subsidiary Alivira Animal Health Ltd, according to a stock market disclosure. Alivira had acquired a 60 per cent stake in Provet for an undisclosed amount in September last year.
Manish Gupta, managing director at Alivira, said the company has been working towards establishing footprints in selected emerging and regulated markets for its animal healthcare business. “This acquisition now makes us the largest animal health player in Turkey," he said.
Once the transaction is completed, the combined entity - Provet and Topkim – would double Alivira's business in Turkey with more than 10 per cent market share.
Topkim has 67 registered products mainly comprising ectoparasiticides, endectocides and injectable antibiotics. In the financial year 2013-14, the company registered sales of 21.8 million Turkish lira ($7.6 million) with earnings before interest, tax, depreciation and amortization of 2.6 million lira ($1 million).
Huseyin Aydin, chairman of Provet, said that Topkim's product portfolio is complementary to Provet's business and the combined entity will consolidate its market position in Turkey and benefit from cost synergies. The expanded product portfolio will also help it increase business in the global markets, Aydin said.
The Turkish veterinary market is estimated to be $400 million and growing around 8 per cent year-on-year, according to SeQuent. It is counted among the top 10 ruminant markets and the 16th largest veterinary market in the world.
Alivira Animal Health, which develops, makes and sells veterinary products, including active pharmaceutical ingredients and formulations in the global market, was a joint venture between SeQuent Scientific and Chennai-based Shasun Pharmaceuticals Ltd. Earlier this year, Shasun agreed to exit the venture completely.
In July, private equity firm Ascent Capital, which had picked up a minority stake in Alivira last year, agreed to swap the stake with shares in SeQuent Scientific, in a move to exit the company. SeQuent agreed to buy stakes held by minority shareholders in Alivira through an all-stock deal worth Rs 239.8 crore.
Shares of SeQuent jumped on the deal and were trading 7.5 per cent higher at Rs 975 in late afternoon trade in a Mumbai market that was down 0.2 per cent.