Dishman buys Solutia's pharma business for USD 74.5 mn

Mumbai, May 24 (UNI) Dishman Pharmaceuticals&Chemicals has acquired pharmaceutical services business of Solutia Inc, comprising Carbogen and Amcis, for US dollar 74.5 million.

Under the terms of the agreement, the company will purchase cent per cent of the stock of carbogen and amcis from Solutia Europe SA/NV, as well as certain other assets used in the pharmaceutical services business, it informed the BSE.

The above consideration includes working capital of USD 8 million.

Dishman Pharma also hopes to leverage its competency in operational efficiency in India, to improve margins in the Swiss operation. This acquisition will boost the company's contract manufacturing business from carbogen customers and the company will now be the only a contract manufacturing organisation in India, with high potency manufacturing capability.

Rabo India Securities (a cent per cent subsidiary of Rabo India Finance Pvt Ltd) is the sole financial and strategic advisor to the company on the deal.

The deal is subject to removal of the restrictions related to the sale under SESA's Euronotes, authorisation by the bankruptcy court overseeing Solutia's reorganisation, and Government and regulatory approvals.

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