The Hindu Business Line : Jubilant acquires Hollister-Stier for $122.5 m

New Delhi April 24 Jubilant Organosys Ltd on Tuesday announced acquisition of the US-based Hollister-Stier Laboratories for $122.5 million. The acquisition would be funded through a combination of cash-on-hand, which had been raised through an earlier external commercial borrowing, and Hollister's debt capacity.

The acquisition is to be completed by June, said the company's Executive Director, Mr R. Sankaraiah.

Hollister is implementing a Capex programme, which is to be completed by the first quarter in 2008, and would significantly enhance capacities and performance outlook, a company release said.

The acquisition would provide Jubilant with a fast growing Contract Injectables manufacturing business and also a stable and profitable allergy business, the release said.

Commenting on the acquisition, the company's Chairman and Managing Director, Mr Shyam Bhartiya, and Co-chairman and Mana Director, Mr Hari S. Bhartiya, said that "Jubilant is a leader in CRAMS (Custom Research and Manufacturing Services) space, delivering high growth performance by servicing the global pharma and life sciences industry. Hollister gives us a ready entry into contract manufacturing of injectables and presents a compelling business opportunity, especially in the US market."

"The acquisition also brings with it, a high quality, steady cash flow allergy extracts and products business. 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," he said.

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