Strides Arcolab, Haw Par Healthcare sign SPA

Mumbai, Sep 1 (UNI) Strides Arcolab and Haw Par Healthcare, Singapore, have entered into a share purchase agreement (SPA), which provides for Strides Singapore Pte Ltd (an indirect wholly owned subsidiary of the Company) to acquire 100 per cent of Drug Houses of Australia (Asia) Pvt Ltd., Singapore (DHA) for a consideration of approximately USD 19.7 million.

The deal figure was arrived at on a willing-buyer and willing-seller basis, said the company in a notice issued to BSE here today. However, the transaction is subject to customary closing conditions and is expected to be completed this month.

Commenting on the acquisition, Company vice chairman and managing director Arun Kumar said, ''The signing of the share purchase agreement with Haw Par Healthcare is the key strategic initiative for Strides to continue to grow through regional strategies alongside global partnerships.'' Established in 1969, DHA is one of the largest generics pharmaceutical manufacturer in Singapore. It is also an important pharma player in Malaysia and Hong Kong amongst other markets. For the financial year ended December 2005, DHA posted sales revenue of USD 16.36 million and PAT of USD 2.72 million.

DHA, which is a wholly owned subsidiary of Haw Par Healthcare, will spearhead Strides AsiaPac and China entry strategies and offers an excellent opportunity to create a regional brand in Asia and China in the long term.

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