Shilpa Medicare to buy Austrian firm

Karnataka-based Shilpa Medicare, a manufacturer of pharmaceutical custom synthesis and specialty active pharma ingredients (APIs), has entered into a memorandum of understanding (MoU) with Austria-based LOBA Finchemie AG to acquire 100 per cent shares of the latter in an all-cash deal.

Privately-owned LOBA has an annual revenue of nearly $15 million and provides APIs, organic intermediates, biochemical diagnostics, and customs synthesis.

The company's product range covers 500 organic compounds available in kilo to small tonne quantities.

"The formal terms of acquisition will be announced after due diligence is complete," managing director Vishnukant Bhutada said.

The company gets two-third of its revenues from exports. During the first six months of FY07-08, it posted revenues of Rs 39.5 crore. For FY06-07, this stood at Rs 74 crore.