To acquire a generic pharma business in Australia and related assets from Aspen for approximately A$380 million
Strides Arcolab announced that Strides Pharma Global, Singapore and Strides (Australia) Pharma, Australia, both wholly-owned subsidiaries of Strides Arcolab have signed definitive agreements with certain wholly-owned subsidiaries of Aspen Pharmacare Holdings, a company listed on the Johannesburg Stock Exchange (Aspen), to acquire a generic pharmaceutical business in Australia together with certain branded pharma assets.
The business and assets being acquired from Aspen have a current prescription market share that will rank Strides and its group entities as one of the top three generic pharma suppliers in Australia and among the top 10 pharma companies in the Australian pharma market.
The business, which will operate under the Arrow Pharmaceuticals brand, will sell approximately 140 generic prescription drugs and an extensive range of non-prescription pharmacy products. The business and the assets being acquired will give Strides group one of the largest pharma product portfolios in the Australian market.
Strides’ previous business in the Australian generic pharma market, Ascent Pharmahealth, was sold to Actavis in January 2012 after a successful five-year investment and growth strategy. The new Arrow Pharmaceuticals business will be led by Dennis Bastas, the previous founder and CEO of Ascent Pharmahealth.
“The Australian generic pharma market has always been very successful for Strides. The Aspen Australian generic pharma assets are a valuable and unique platform for Strides to re-build its business in Australia. Strong local management, a market leading product portfolio supported by our in-house cost effective manufacturing, will be the key ingredients of our strategy for Australia,” said Arun Kumar, Founder and Group Chief Executive Officer, Strides Arcolab.
The acquired products had sales of approximately A$120 million in the past financial year (June 2014) with an EBITDA margin of approximately 31 per cent. The consideration for the acquisitions will be approximately A$380 million. The acquisition of the business will include access to the product pipeline that was under development by Aspen and includes a number of major product launches in the next six months.
The transactions will be financed by a combination of internal accruals and debt financing. It will be EPS accretive immediately.