Pharmaceutical major Cipla today announced that its board has approved the acquisition of Meditab Specialities for an aggregate consideration of Rs 1.33 billion.
Meditab has smallimid-sized formulation manufacturing facilities at multiple locations which are substantially manufacturing formulation products for the company.
In addition to Pill control over Meditab`s aforesaid manufacturing facilities which would result in improvements in operational and cost efficiencies, the company will benefit from Meditab`s investments as follows:
> Expansion of the company`s API / intermediates international business through the manufacturing facility in China;
> Entry into the high growth Chinese domestic formulations market through the local manufacturing facility in China;
> Additional business opportunity in Africa by leveraging on local manufacturing facility in Uganda and Extending the company`s existing strategic relationship for research & development of stem cell based products having facilities in India and Malaysia, through equity participation.
Entities controlled by the relatives of the promoters are major shareholders in Meditab. The aggregate consideration for this acquisition was determined on the basis of the valuation report provided by Grant Thornton and fairness opinion provided by Kotak Mahindra Capital Company.
Source: My Iris