Ranbaxy buys S African generic co
Ranbaxy Laboratories has acquired South Africa’s fifth-largest generic company Be-Tabs Pharmaceuticals for $70 million. This acquisition will more than double Ranbaxy’s South Africa’s sales to $55 million and provide the Indian pharma company with an access to manufacturing facility in that country.
According to sources, Dr Reddy’s Laboratories, too, was in the race for Be-Tabs, but Ranbaxy was successful in clinching the deal. The acquisition will be EPS accretive, and is valued at 2.2 times of sales and 7.7 times of EBITDA multiples.
The transaction, subject to requisite approvals from South Africa’s Competition Council Authority, is expected to be completed in the first quarter of 2007. Ranbaxy will fund the acquisition through FCCB proceeds.
“The acquisition of Be-Tabs results in considerable synergies and further strengthens Ranbaxy’s foothold in South Africa. It reinforces our position by expanding our portfolio in a key market that is exhibiting strong growth potential.
The move will help us to provide effective disease-management solutions, in support of the government’s objective to make healthcare affordable to a wider cross-section of the population,” said the company’s CEO & MD Malvinder Mohan Singh.
Be-Tabs Pharma is the largest Penicillin manufacturer in South Africa, with revenues of nearly $30 million. It manufactures a portfolio of ethical and over-the-counter solid-oral and liquid formulations in South Africa. Ranbaxy’s sales in the country are around $24-$25 million.
Earlier this year, Ranbaxy undertook four acquisitions in Europe. It acquired 96.7% stake in Romania-based Terapia from Advent International for $324 million in March and a Belgian company — Ethimed NV — for an undisclosed sum.
Ranbaxy also acquired the unbranded generic business of Allen, a division of GlaxoSmithKline (GSK) in Italy, through its Italian subsidiary and the Mundogen generic business of GSK in Spain, through its Spanish arm-Laboratorios Ranbaxy SL.
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