Strides to exit its investment in Arrow for AUD 394 mn

Strides Pharma Science announced that its step-down subsidiary Strides Pharma Global, has approved the sale of its entire Australian business (including Arrow). The Board of Directors of Strides have recommended this transaction. The transaction will be subject to shareholder approval of Strides and completion of the merger of Arrow and Apotex Australia.

As part of the proposed transaction, Strides will enter into a 10-year preferred supplier contract with the merged entity while enabling Strides to retain ongoing earnings of 40%-50% of current EBITDA at Arrow and recoup all its investments in Australia.

Strides will also retain access to the IP of 140 products in the Arrow portfolio.

 

Deal Structure

- Strides will sell its complete stake in Arrow to entities owned and operated by Dennis Bastas, Executive Chairman and Co-founder of Arrow.
- Arrow will merge with Apotex to create the new entity - Arrotex
- Strides will retain Portfolio IP and will enter into a ten-year preferred supply agreement with Arrotex
- Strides to receive AUD 394 mn while Arrotex will pay-out AUD 39 mn minority interest.
- Strides will receive AUD 300 mn as upfront payment at the closure of transaction while the balance AUD 94 mn to be deferred through a secured instrument.

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