Eris Lifesciences buys Strides Shasun#39;s India branded business for Rs 500 crore
Eris Lifesciences on Saturday said it has entered into a definitive agreement to buy India branded generics business of Strides Shasun for an aggregate cash consideration of Rs 500 crores.
The transaction is subject to customary closing conditions and parties intend to close the transaction by November 30th, 2017.
Strides’ India branded generics business comprises of a portfolio of 130 plus brands in the domains of neurology, psychiatry, nutraceuticals and gastro.
As per the terms of the agreement, Eris will acquire the marketing and distribution rights for the said portfolio of products in India, along with the employees forming part of the business. Strides will retain the global rights to the products.
The acquisition is Eris’s fourth—and the largest–in the last 18 months, the company will be among the top ten companies in the central nervous system (CNS) segment.
Eris is already among the top 20 companies in the cardiology segment and ranks among the top ten in the diabetology segment.
Since inception in 2007, Eris has focused on the “chronic segments” of cardiology and diabetology. Eris had forayed into the CNS segment only recently.
This acquisition cements Eris’s position in the top three chronic segments. Post-acquisition, Eris will break into the league of top 25 companies having a market share of more than 1% in the Indian Pharmaceutical Market.
The India branded generics business being divested by Strides had sales of Rs 181 crores in FY 2017.
“The transaction is a good strategic fit for Eris and will strengthen our position in the key segments of CNS and Gastro-Intestinal therapies,” said Amit Bakshi, Managing Director Eris Lifesciences.
“We expect to realize cost and revenue synergies from this transaction given Eris’ strong presence in the branded business in India,” Bakshi added..
“This transaction is the outcome of our portfolio re-prioritization, to focus more sharply on larger regulated markets,” said Shashank Sinha, Managing Director of Strides in a statement.
“We retain global rights for the divested portfolio, which have significant sales in Africa and will continue to grow our emerging market business. Net proceeds from this transaction will be used to pay down debt to the tune of INR 400 crores,” Sinha added.
For Strides, MAPE Advisory Group and Tatva Legal acted as the transaction advisor and legal advisor respectively. EY India was the exclusive M&A advisor and Shardul Amarchand Mangaldas & Co was the legal advisor to Eris Lifesciences on this transaction.