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Intas Pharmaceuticals Ltd, through its wholly owned subsidiary Accord Healthcare, has agreed to acquire Actavis UK and Actavis Ireland from Teva Pharmaceutical Industries Ltd for £603 million payable in cash.
The transaction is part of the European Commission’s anti-trust divestiture requirements arising from Teva’s acquisition of Allergan’s generics business, a late evening note from Intas said.
Actavis UK and Ireland are among the leading suppliers of generic pharmaceuticals in both the UK and Irish markets and comprises selected assets and operations across the respective markets.
The acquisition is among the country’s top overseas buys, in league with last year’s $ 880 million acquisition of US-based Gavis by Lupin.
Actavis UK & Ireland focuses on providing high quality generics products to pharmacies and wholesalers in the UK and Ireland through their employee base of over 600 staff. Actavis UK and Ireland is also supported by a strong manufacturing presence in the UK through its Barnstaple site which provides services both to Actavis and other third parties. The company generated over £250m of sales in 2015, the note said.
“This transaction represents a unique opportunity for Intas to build scale in UK & Ireland - adding to our market leading hospital franchise - and creates a strong platform for further European expansion”, Binish Chudgar, Vice Chairman and Managing Director of Intas, said in the note.
”Through our subsidiary, Accord Healthcare, we have been operating successfully in Europe for more than a decade and this acquisition will make Accord the leading generics player in the UK market. We have a clear plan for the continuation and development of the Barnstaple site and the Actavis team and we look forward to welcoming them to the Intas Group. We are confident that the cultural alignment between Accord and Actavis UK & Ireland will ensure a smooth integration,” he added.
Post-Brexit commitment This transaction builds on Accord’s commitment to UK manufacturing having recently made a significant investment to reinstate a facility closed by a Sanofi Aventis in Newcastle. The Barnstaple plant will become the company’s fourth UK site, ensuring Accord has one of the most extensive supply chains to service pharmacies, hospitals and wholesalers across UK and Ireland and also into Europe. Accord has confirmed its commitment to manufacturing at Barnstaple for at least the next 5 years, the note said.
The transaction is subject to regulatory approval, which is expected to be provided in Q4 2016, with completion following shortly thereafter.
This investment by Intas represents the largest inward investment by an Indian company into the UK since the EU referendum and is a confirmation of its confidence in the future of the British economy, the note added.
The Ahmedabad based privateIy held Intas is backed by financial investors Temasek and ChrysCapital.
jyothi.datta@thehindu.co.in
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