Aurobindo Pharma Limited, through its Netherlands-based wholly-owned step-down subsidiary Agile Pharma BV, has acquired Portugal-based Generis Farmaceutica SA from Magnum Capital Partners for € 135 million (about Rs 969 crore). The acquisition includes the manufacturing facility in Amadora, Portugal, which has the capacity to manufacture 1.2 billion tablets/capsules/sachets annually.
Generis is a company engaged in the manufacture and sale of pharmaceutical products in Portugal. Closing of the transaction is conditional on obtaining necessary approvals from Portuguese authorities. This deal consolidates Aurobindo’s footprint in Portugal, which currently consists of Aurovitas, Unipessoal LDA and Aurobindo Pharma (Portugal), Unipessoal Limitada.
The net sales for the acquired business is estimated to be approximately € 72 million in 2017, compared to € 64.8 million in 2016. Adjusted EBITDA estimate for 2016 is € 12.7 million which is projected to improve to € 15.8 million EBITDA in 2017. Synergies from Aurobindo’s vertical integration and pipeline breadth are expected to be € 2 million in 2018, € 5 million in 2019, and expected to improve further thereon.
Being one of the leading generics companies in Portugal, Aurobindo will benefit further from the improvement in Amadora plant capacity utilisation by servicing both local and European markets.
Aurobindo has been steadily expanding its European footprint since 2006, via acquisitions across several key markets, most notably in 2014 with the acquisition of Actavis’s commercial operations in seven Western European countries. The acquisition of Generis, thus, builds upon an already successful growth strategy.
“The acquisition of Generis, by leveraging its strong portfolio and unrivalled brand recognition, will allow us to establish ourselves as the top generics player in the Portuguese market. The combined entity will benefit from a robust pipeline covering all major molecules coming off-patent in the next five years. The acquisition includes a state of the art manufacturing facility based in Portugal, which will allow us to better serve both the local Portuguese market and the broader European market, particularly with regard to small volume products and also to meet timelines for low lead time tenders,” commented V Muralidharan, SVP of European Operations for Aurobindo.
He added, “This acquisition, coupled with our past acquisition activity, underlines our commitment to focus on growth initiatives in European markets, and will be a key driver of growth for the future. Given our past experience, we expect a seamless integration of Generis with the rest of the company.”