Piramal to acquire Ash Stevens Inc for USD 53 mn

Piramal Enterprises is set to acquire US-based contract development and manufacturing firm Ash Stevens Inc for up to $52.95 million (over Rs 350 crore).

The firm’s “wholly-owned US subsidiary has entered into an agreement to acquire 100 per cent stake in Ash Stevens Inc  in all cash deal for a total consideration of $42.95 million plus an earn-out consideration capped at $10 million, subject to achievement of certain earnings before interest, taxes, depreciation, and amortisation targets, payable over next six months,” Piramal said.

This potential transaction is expected to be completed by end of August, it added.

“Ash Stevens will add high potency capabilities to the services we offer our customers,” Vivek Sharma, Pharma Solutions business chief executive, Piramal Enterprises, said.

High Potency APIs (HPAPI) was one of the fastest growing segments in the pharmaceutical sector and more than 50 per cent of the HPAPIs are anti-cancer drugs, he added.

“We have already identified areas where we can create significant value together, and will be moving forward rapidly to achieve those objectives,” Ash Stevens chief executive Stephen Munk said.

"We look forward to working with the Piramal leadership and management team, to develop API solutions that benefit customers and improve the lives of patients," he added.

Ash Stevens is a full service CDMO (contract development and manufacturing organisation) focused on development and manufacturing of high potency active pharmaceutical ingredients (HPAPIs).

Shares of Piramal Enterprises Ltd today closed 7.46 per cent up at Rs 1,801.25 ascrip on BSE.