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Hyderabad-based Vivimed Labs Ltd has acquired Latin American active pharmaceutical ingredients manufacturer Uquifa for $55 million.
The 75-year-old Uquifa has operations in Spain and Mexico with a gross asset base of $100 million.
“With Uquifa, Vivimed will have a footprint into Latin America and deeper into Europe,” Mr Santosh Varalwar, Managing Director, Vivimed Labs, said in a release issued here on Thursday.
Equity and debt
The acquisition has been financed by a balanced mix of debt and equity. The investment consideration of $55 million is paid by an equity infusion of $ 20 million and debt financing of $25 million. The balance of $10 million would be a deferred payment.
The net assets of Uquifa were $65 million as on June 30, 2011.
Vivimed would leverage the position of Uquifa and its pipeline of filings to accelerate growth across Europe and the Americas in the next five years.
Uquifa would become the API division of the Vivimed group, Mr Varalwar said.
This is the second global acquisition for Vivimed after it acquired James Robinson, UK, in 2008.
In the domestic market, it bought Kolkata-based pharma company Klar Sehen Pvt Ltd (KSPL) about two months ago.
The scrip of Vivimed declined 2.21 per cent on the Bombay Stock Exchange on Thursday to end at Rs 240.95.
Vivimed had a turnover of Rs 416 crore in the financial year 2010-11 and posted a net profit of Rs 49 crore.
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