Strides Arcolab acquires majority stake in Bafna's India branded generic business

For cash consideration of Rs 48.1 crore

Strides Arcolab announced that the Company has entered into an agreement with Bafna Pharmaceuticals to acquire majority stake of their India branded generics business for a cash consideration of Rs 48.1 crore. The transaction is expected to close by end of September 2014 and is subject to customary closing conditions and statutory approvals.

Transaction structure

The Indian branded generic business of Bafna is valued (enterprise value) at Rs 65 crore.

The business in its entirety will be transferred to an SPV, in which strides will hold 74%.

Strides to pay a consideration of Rs 48.1 crore in cash to Bafna with balance as 26% equity participation in the SPV.

 

The IPs and manpower will be transferred to the SPV as part of the business transfer.

The SPV will have global rights for Raricap brand.

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