Ranbaxy acquires Romanian company Terapia for USD 324 Mln

Mumbai, Mar 29 (UNI) Ranbaxy Laboratories Ltd today announced its acquisition of Terapia S A (Terapia) of Romania for a consideration of USD 324 million.

The deal will combine the strengths of the two premier generic companies and will allow Ranbaxy to leverage its expanded base in the rapidly growing Romanian pharmaceutical market, across the European Union and the CIS markets.

Commenting on the acquisition, Ranbaxy CEO and Managing Director Mr Malvinder Mohan Singh said, Terapia represented exceptional value for the stakeholders.

Within the Ranbaxy fold, it unleashes multiple synergies of product development, product flow, low-cost manufacturing, proximity and access to high growth markets, in country presence and sound fundamentals, while being EPS accretive to the group immediately.

The transaction is compelling and furthers us on the path to becoming a top five global generic company, he said.

The company gains access to Terapia's product basket of 157 marketing authorizations with a strong focus on the fast growing segment of CVS, CNS&musculoskeletal therapeutic segments.

These presently comprise 71 per cent of the company's domestic sales. Enalapril, Aspenter (Acetylsalicylic acid), Diurex 50 (Spironolacton + Furasemidum Combination and Pentoxi retard (Pentoxiflin) are some of Terapia's successful products in the domestic market.

As a result of the acquisition, the company will also be able to utilize the low-cost manufacturing capacities of Terapia comprising of two manufacturing sites producing tablets, capsules, sterile ampoules and liquids. Products manufactured from these plants will cater to the Romanian domestic market and will be used to service demand from other international markets where the Company has a presence. This further extends upon the company's current manufacturing set up in Ireland, a company release said.

The company was advised by ABN AMRO Corporate Finance Ltd.

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