Ranbaxy acquires S Africa's generic co for $70mn

By Staff
|
Google Oneindia News

New Delhi, Dec 1: Ranbaxy Laboratories Ltd today announced the acquisition of South Africa's leading generics company Be-Tabs Pharmaceuticals (Pty) Ltd for 70 Million dollars.

With the acquisition, the company expects to boost its South Africa operations.

''The acquisition of Be-Tabs' results in considerable synergies and further strengthens Ranbaxy's foothold in South Africa. It reinforces our position by expanding our portfolio in a key market that is exhibiting strong growth potential,'' company CEO and Managing Director Malvinder Mohan Singh said.

With sales of about 30 million dollars, Be Tabs has a strong over-the-counter (OTC) portfolio with significant brand recognition that can be leveraged with wholesalers, pharmacists and consumers.

It is the largest Penicillin manufacturer in South Africa, he added.

The transaction to be funded from the company's FCCB proceeds is subject to requisite approvals from South Africa's Competition Council authority, and expected to be completed in the first quarter of the year 2007.

The deal is valued at 2.2 times of sales and 7.7 times of EBITDA multiples.

The acquisition will be EPS accretive in year one.

South Africa is the largest pharma market in Africa, valued at close to two billion dollars with a high otential for generic growth (as per IMS).

UNI

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