Ahmedabad based Eris Lifesciences, that has clocked a 21.7 percent compounded annual growth rate (CAGR) from FY13 to FY17, has acquired nutraceuticals company UTH Healthcare Ltd. in an all-cash deal. Eris has acquired 100 per cent shareholding of UTH for Rs 12.85 crore.
This is the company’s first acquisition after being listed on the exchanges earlier this year. It posted revenues of Rs 725 crore in FY17, clocking a 21.4 percent year on year growth with operating profit margins of 37.1 percent.
UTH Healthcare is largely engaged in the segments of obesity, diabetes, gestational diabetes mellitus, maternal nutrition, and cardiovascular diseases. UTH Healthcare Ltd. had turnover of Rs 25.58 crore in FY17. Its focus has been on developing products in the chronic and acute category which are linked to lifestyle related disorders.
Amit Bakshi, chairman and managing director, Eris Lifesciences Limited, said that UTH is a first of kind nutrition focus company founded by an industry veteran A K Khanna who, on the other hand, has signed up for a bigger role at Eris and hopes that the two entities would leverage their strengths to add value.
Earlier, in July 2016, Eris had acquired trademarks in relation to 40 brands, from Amay Pharma for an aggregate consideration of Rs 32.87 crore, in order to grow its product portfolio in the cardiovascular and anti-diabetics therapeutic areas. Thereafter, in December 2016, Eris entered into a share purchase and shareholders’ agreement to acquire 75.48 percent in Kinedex, for an aggregate consideration of Rs 77.18 crore.
Kinedex primarily focuses on products catering to mobility related disorders in the musculoskeletal therapeutic area, within the acute pain-analgesics therapeutic area.
Source: Business-Standard 