BANGALORE, Feb 28: Pharma major Strides Arcolab Limited today announced that it has entered into a definitive agreement with Mylan Inc for the sale of its specialties subsidiary, Agila Specialties Private Limited, and simultaneously its overseas specialties subsidiary, Agila Specialties Asia Pte Limited, Singapore.
Under the terms of the agreement, Strides and its subsidiary will receive an aggregate sum of USD 1,600 million in cash on closing and a potential additional consideration of up to USD 250 million subject to the satisfaction of certain conditions by Strides. The division recorded sales of USD255 million and EBITDA of USD86 million for the historical year ended 31 December, 2012 according to a Strides Acrolab statement here today.
The City Headquartered Agila is a leading global speciality injectables business focused on key domains including oncolytics, penems, penicillin, cephalosporins and ophthalmics in India and overseas. Agila operates from nine world-class global manufacturing facilities, including one of the largest sterile capacities in India and amongst the largest lyophilisation capacities in the world. The transaction has been independently approved by the respective Board of Directors of Strides and Mylan.
The agreement to sell Agila Specialties Asia Pte. Limited, Singapore, has been independently approved by the respective Board of Directors of Agila Specialties Asia Pte. Limited and Mylan. Following successful closing of the transaction, Strides proposes to utilise proceeds towards, inter alia, retiring debt, providing a pre-tax return of approximately USD700 million to USD 800 million to shareholders, and costs related to the satisfaction of contingent conditions.
Strides will continue to operate and develop its Pharma business and front-end businesses in India and Africa. Strides will also focus on developing a fully integrated Biotech business which will be fully funded post this transaction the statement said.
(UNI)
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