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| Sanofi arm to buy Universal Medicare's nutraceuticals biz |
| BS Reporter / Mumbai Aug 25, 2011, 00:23 IST |
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Aventis Pharma, a unit of France’s Sanofi, said on Wednesday it would acquire unlisted Universal Medicare’s nutraceuticals business to boost its consumer healthcare and wellness segment in India. Shares of Aventis Pharma rose over 7 per cent early in the day.
The transaction is expected to close in the fourth quarter of 2011 and involves transfer of about 750 employees of Universal to Aventis Pharma, the latter said in a statement. Aventis was close to buying the over-the-counter business of Universal Medicare for about Rs 5 billion ($109.5 million).
Universal Medicare’s turnover of the nutraceuticals business, which comprises of over 40 over-the-counter formulations, was about 1.1 billion rupees, it said without disclosing the deal value.
Universal’s portfolio includes cod liver oil capsules Seacod, vitamin supplement tablets Multivite Gold, eyecare brand Selace-i, skin care brand Radiance and pain relief gel Icegel.
“This strategic acquisition,” said Shailesh Ayyangar, managing director, Aventis Pharma, “will allow Aventis Pharma and Sanofi Group to reach out to large sections of India’s population through a broad offering comprising of pharmaceuticals, vaccines and now nutraceuticals.”
According to the deal, Universal Medicare will manufacture the products and supply them to Aventis Pharma on mutually agreed terms, it said. Over-the-counter products made by Indian firms have been acquisition targets for multinational drug companies looking to expand their footprint in fast-growing markets.
In December, British consumer goods company Reckitt Benckiser (RB.L) agreed to buy privately-held Indian firm Paras Pharmaceuticals, which makes a number of medications, for about $726 million.
In May, Johnson & Johnson (JNJ.N) agreed to buy several over-the-counter medicines sold in Russia from India’s JB Chemicals and Pharmaceuticals Ltd (JBCH.NS) for about $260 million.
Shares of Aventis Pharma, which have gained 6.2 per cent this year, compared to a 12.4 per cent drop in the broader India healthcare index finance/markets/index were trading up 5.82 per cent at 2,161.80 rupees at 1:42 am EDT in a weak Mumbai market on Wednesday.
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