The consideration is INR 2,800 million (SEK 351 million1) on a cash and debt free basis whereof INR 600 million (SEK 75 million1) will be paid in newly issued Recipharm shares (RECI-B). The acquisition will be completed in two steps; the cash part today and the part paid in Recipharm shares later during the first half of 2018.
Thomas Eldered, CEO of Recipharm said “I have been particularly pleased with the way the performance in Nitin Lifesciences has developed since it became part of the Recipharm Group. Both sales and margins have grown in the business despite the recent macro-economic volatility in India and we foresee this favorable development to continue. The transaction will allow us to combine and better exploit operational synergies with our other Indian business.
"The equity investment will align interests of the Sobti family. As such, I have great pleasure in announcing that current chief executives and members of the founding family Dr Chetan Sobti and Mr Nitin Sobti shall not only continue to spearhead the current business but also in addition take on the responsibility to develop and grow Recipharm’s total business in the Indian and emerging markets”.
Current minority interest in Nitin Lifesciences Ltd is acquired
Opportunity for operational synergies in Recipharm’s Indian businesses
Executive management in India remains unchanged
Equity issue serves to align interests with the Sobti family
Transaction expected to be accretive to Recipharm EPS in 2018
Recipharm is a leading Contract Development and Manufacturing Organisation (CDMO) in the pharmaceutical industry employing around 5,000 employees.
Recipharm offers manufacturing services of pharmaceuticals in various dosage forms, production of clinical trial material and APIs, and pharmaceutical product development.
Recipharm manufactures several hundred different products to customers ranging from big pharma to smaller research and development companies.