Jubilant buys US-based Hollister for $123 mln

New Delhi, Apr 25 (UNI) Jubilant Organosys today said it has acquired US-based Hollister-Stier Laboratories for 123 million dollars, strengthening its global CRAMS business via entry into the high barrier injectables segment.

The company plans to use a combination of cash-on-hand and Hollister's debt capacity to fund the acquisition which is expected to be completed by June this year, a statement said.

Hollister-Stier Labs is engaged in high growth injectable contract manufacturing and stable allergy immunotherapy businesses.

The company will also reimburse capital expenditure incurred for the capacity expansion of 16 million dollars through March 31, 2007 and certain cash capital expenditure (capex) for capacity expansion incurred by Hollister until the date of closing of transaction.

Hollister is implementing a capex programme, which is expected to be completed by the first quarter 2008, that will significantly enhance capacities and performance outlook.

Jubilant Organosys Chairman and Managing Director Shyam S Bhartia and Mr Hari S Bhartia, Co-Chairman and Managing Director of the company said, ''Jubilant is a leader in CRAMS (Custom Research and Manufacturing Services) space, delivering high growth performance by servicing the global pharma and life science industry.'' This deal gives us a ready entry into contract manufacturing of injectables and presents a compelling business opportunity, especially in the US market.

''Hollister is profitable and given its strong financials, the acquisition will augment our financial performance from day one and create incremental value for all our stakeholders.'' The Board has approved the deal but is subject to the customary closing conditions and necessary regulatory approvals.

This is the largest overseas acquisition in contract manufacturing (CMO) sector by an Indian company.

UNI