Swedish firm Recipharm acquires Nitin Lifesciences for Rs 671 crore

Swedish firm Recipharm has picked up 74 per cent stake in sterile injectables maker Nitin Lifesciences for Rs 671 crore in an all cash deal, the companies announced on Tuesday.

Nitin Lifesciences is engaged in contract manufacturing of  liquid ampoules, liquid vials, sterile dry powder, multidose eye and ear drops for Indian and foreign drug makers.

In twelve months ending August it reported a revenue of Rs 316 crore and earning before interest tax depreciation of Rs 73 crore.

The company was founded by M M Sobti in 1994 and has manufacturing units in Haryana and Himachal Pradesh.

This is the largest inbound deal in the sterile injectables space in the last two years, after the  $ 1.75 billion acquisition of Strides Arcolab's subsidiary Agila Specialities by Mylan in 2013. Ernst & Young were transaction advisers to Nitin Lifesciences.

The deal is expected close in first quarter 2016 after the approval of Foreign Investment Promotion Board.

“Recipharm will join forces with the founding and managing owners, the Sobti family, in order to further grow the current business with domestic and multinational customers into a leading position in the Indian sterile contract development and manufacturing organisation market,” the companies announced on Tuesday.