Recipharm has entered into an agreement to acquire a majority stake in Nitin Lifesciences Ltd, a sterile injectable company for an estimated Rs 671.2 crore.
"Recipharm will acquire 74 percent of the shares of Nitin Lifesciences for an estimated purchase consideration of Rs 671.2 crore on a cash and debt free basis. The acquisition is expected to be completed in Q1 of 2016 once FIPB approval comes through," said Recipharm.
Recipharm CEO Thomas Eldered said: "It is our stated aim to have a more global footprint and participate in opportunities that emerging markets bring. The Indian market is particularly attractive showing high growth levels, and the transaction firmly establishes Recipharm's EM strategy. Nitin Lifesciences can also be used as a platform for entry into other regions."
"We believe that with the support and network of Recipharm, we shall be able to further expand and continue to grow both domestically and outside the Indian market," said Chetan Sobti, Nitin Lifesciences CEO.
"Recipharm after a certain point will have the option to acquire the remaining shares in Nitin, and current owners will have the option to sell to Recipharm their remaining shares in Nitin," the company said.
Recipharm is a leading CDMO (contract development and manufacturing organization) in the pharmaceutical industry based in Sweden employing some 2,200 employees. The company will finance the acquisition under the existing bank credit facilities, said the Sweden-based firm.