*Strides Arcolab Ltd* is planning to acquire the remaining stake in
Australian *Ascent Pharmahealth Ltd* to completely take over the company.
At present, Strides owns 57% stake in Ascent. The company will have to pay
around A$40mn for the remaining 43% stake.
According to Strides' statement to the BSE, Ascent Arcolab has an enterprise
value of A$100mn.
The offer involves a cash price of A$0.35 per share of Ascent Pharmahealth
at a premium of 84% to the 12-month volume weighted average share price of
A$0.19.
Strides is seeking to include the founder and CEO of *APH Dennis Bastas *as
an equity participant The company will retain the executive management team
of Bastas.
Transaction Reference: ET
Transaction Note
*Ascent Pharmahealth Limited* was formerly known as Genepharm Australasia
Ltd. The company sells and distributes generic pharmaceuticals and other
health related products.
Its major brands are *Avene*, *Hairy Lemon *and *Estelle.*
The deal values Ascent at 7-7.5 times its EBITDA. Strides Arcolab had
acquired a majority controlling stake in Ascent in 2008.
Established in 1990, Strides is a manufacturer and exporter of finished
pharmaceutical dosage forms – both branded and generic. *Zenith
Pharmaceuticals* (an investment vehicle *Symphony Capital Partners*) is the
largest shareholder (around 24.1%) in Strides Arcolab.
Earlier this month, Strides Arcolab acquired a sterile injectable
manufacturing facility in Campos, Brazil, from *Aspen* for $75mn.
Incidentally, this Campos facility was one among two others that Strides had
sold to Aspen in 2007.
KVEZAR® VIEW
DEAL TRACKER FOR
DateTypeSub TypeBuyerSize Ascent Pharmahealth-Strides Arcolab(Stake Hike)
16/03/10 M&A Subsidiary Investment Strides Arcolab Ltd. 43.00 Ascent
Pharmahealth - Strides Arcolab Ltd. 29/04/08 M&A Strides Arcolab Ltd.
0.00 Ascent Pharmahealth - Strides Arcolab Ltd. 07/02/08 M&A Strides
Arcolab Ltd. 0.00
Recent Transactions In The Sector
DateTypeBuyerTargetSizeState 16/03/10 M&A Strides Arcolab Ltd. Ascent
Pharmahealth Ltd. 43.00 Announced 15/03/10 M&A Elder
Pharmaceuticals Ltd. Elder-Biomeda EAD 12.00 Announced 09/03/10
Private Equity Goldman Sachs (Principal Investments) Strides Arcolab
Ltd. 5.40 Completed 04/03/10 M&A Strides Arcolab Ltd.
Manufacturing
Plant (Brazil) 74.00 In-Process
Profiles
Company NamePromotersOfficeCompetitorWebsite Ascent Pharmahealth Ltd.
Strides Arcolab Ltd. Padma Kumar Pillai & Family
Chayadeep Properties Private Limited
K R Ravishankar
Arun Kumar
Caryl Pharma Pvt Ltd
Agnus Holdings Pvt Ltd
Arcolab (India) Pvt Ltd 201 Devavrata SOC 17, Vashi, New Mumbai-400705 Sun
Pharmaceutical Industries Ltd.
Dr. Reddy's Laboratories Ltd.
Cipla Ltd.
Lupin Ltd.
Wockhardt Ltd.
Matrix Laboratories Ltd www.stridesarco.com
--
Regards
Hardik Shah
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