Plethico Pharmaceuticals has decided to acquire 20% stake in a CIS retail pharmacy chain for $20 million. In an all-cash deal, Plethico will acquire 20% stake in a subsidiary of Hong Kong-based Tricon Holdings, the company said in a release to the BSE on Friday, without disclosing the name of the target firm.
The acquisition is expected to add Rs 100 crore to Plethico’s topline in the first year. On the other hand, Tricon will get access to over 1,000 products from Plethico and its subsidiary, Natrol. The deal is expected to be completed by next month.
Plethico CEO Chirag Patel told ET, “This will help us to consolidate our position in the CIS market.” Tricon has 300 retail pharmacies across countries in the CIS. The company sources products from the UAE and others countries including India. Plethico CFO Sanjay Pai said, “We have been wanting to get into the retail pharmacy space for sometime now. We have tried every permutation and combination to improve cashflows from the CIS but failed. We haven’t been able to optimise the cash flow. So we decided to deal directly with the pharmacies.”
Source: Economic Times