| Wockhardt Ltd is set to sign an agreement to acquire Pinewood Laboratories of Ireland. The deal, which is expected to be in the range of Rs 500-600 crore, would make Wockhardt a strong player in Western Europe.
|
| |
| The Tipperary-based Pinewood had recorded annual sales of over €46 million and a net profit of €5.56 million in the financial year ended June 2005.
|
| |
| Pinewood Laboratories has been on the block since June this year as its major shareholder and managing director Costello was considering options to capitalise on the increased merger and acquisition activity in the European pharma space. Apart from Wockhardt, there were three other Indian companies also in the race for the company.
|
| |
| Sources close to the development said that Wockhardt emerged the highest bidder in the final rounds of bidding, where more than 10 international companies made indicative offers.
|
| |
| The bidders were shortlisted last week and included Wockhardt, Zydus Cadila, Teva Pharmaceuticals from Israel, Barr Pharmaceuticals in the US, Stada in Germany and Actavis in Iceland.
|
| |
| While a deal with Wockhardt had not been formally completed yet, the sources said they would be surprised if it did not go ahead. Wockhardt's bid would value the company at about twice its last year's revenue figure.
|
| |
| The company, which previously made acquisitions in Britain and Germany, is likely to fund the buyout of Pinewood through a mixture of debt and equity.
|
| |
| However, Wockhardt sources did not confirm the development.
|
| |
| Pinewood currently employs about 350 people in Tipperary and Dublin. It makes generic drug products that are sold in more than 30 countries.
|
| |
| In recent years the company has been on a rapid growth.The company's June 2005 revenue of €46 million was up more than 24 per cent from €37 million of the previous year. Its Pre-tax profits rose to almost €5.6 million last year from €3.4 million the previous year.
|
| |
| At the end of June 2005, Pinewood had an accumulated profit of more than €21 million and shareholders' funds of more than €23 million. According to the accounts, Pinewood invests about 5 per cent of its revenues each year in product development.
|
| |
| Pinewood recently made substantial investment in its manufacturing plant at Ballymacarbry outside Clonmel, and it has its offices and warehouses in Dublin.
|
| |
| The accounts said Pinewood's objective was to sustain a revenue growth rate of 20 per cent plus that would indicate revenue of at least €55 million in the 12 months to the end of June this year. |
| |
|
| |
Content Guide
