Drug firm Sequent Scientific today said its subsidiary Alivira Animal Health will acquire Turkey's Topkim for 20.7 million Turkisk Lira (over Rs 48 crore).
The acquisition will be made through Provet Veterinary Products, a subsidiary of Alivira, Sequent Scientific said in a a regulatory filing.
The transaction has been valued at the enterprise valuation of Turkish Lira 20.7 million, it added.
"As part of our strategy to create a global animal healthcare company, we have been working towards establishing strong foot prints in selected emerging and regulated markets," Alivira's Managing Director Manish Gupta said.
The company recently doubled its business in India and this acquisition now makes the firm the largest animal health player in Turkey, he added.
"Both India and Turkey are strong cattle markets. Going forward you will see Sequent/Alivira making some significant strategic moves in this direction," Gupta said.
Topkim has over 67 registered products that include ectoparasiticides, endectocides and injectable antibiotics.
It has wide distribution capabilities with presence in every sales point in Turkey. The company registered sales of Turkish Lira 21.8 million in FY 2014.
The acquisition would help Sequent to consolidate presence in the USD 400 million Turkish veterinary market, which is growing at around 8 per cent year on year.
Turkey is among the top ten ruminant market and overall it is the 16th largest veterinary market in the world. The combined entity (Provet and Topkim) would make Alivira the largest animal health company in Turkey.
The move would help Alivira to double its business in Turkey with more than 10 per cent market share. It would also provide significant cost synergies for combined operations.
"Topkim's product portfolio is complementary to Provet's business and the combined entity will consolidate the company's market position in Turkey and also benefit from cost synergies," Provet Chairman Huseyin Aydin said.
Sequent shares were trading at Rs 968.75 a piece, up 6.87 per cent, on BSE.