Ranbaxy buys SA firm Be-Tabs for $70 million
Ranbaxy Laboratories has consolidated its position in the South African pharmaceutical market by acquiring Be-Tabs Pharmaceuticals (Pty) Ltd, the fifth largest generic player in the country for $70 million.
With a combined turnover of $50-55 million, Ranbaxy will now enjoy 1.6 per cent market share in that country. This is the fourth major overseas acquisition of Ranbaxy this year.
The transactions, subject to requisite approvals from South Africa’s Competition Council Authority, are expected to be completed in the first quarter next year.
Be-Tabs is the largest manufacturer of Penicillin formulations in South Africa and has a vibrant portfolio of ethical and over-the-counter (OTC) solid-oral and liquid formulations.
It actively participates in local and export tenders in the African Continent. With sales of approximately $30 million, it is one of the most profitable companies in the market.
"Except amoxycilin none of the products currently marketed by Ranbaxy and Be-Tabs overlap. This 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," Malvinder Mohan Singh, CEO & managing director, Ranbaxy, said in the statement.
The statement said Ranbaxy would double its business as a starting point and capitalise on the complimentary nature of the product profile of both the companies.
Be-Tabs has considerable strength across therapeutic segments and is very strong in areas such as pain management and vitamins, it said.
Rashid Bhikha, chairman, Be-Tabs, said, "Ranbaxy’s stature as a global generic pharma player brings further credibility to Be-Tabs’ 30-year-old rich heritage in South Africa and will take it to its next phase of growth."
Be-Tab acquisition is the four major acquisition funded from Ranbaxy’s FCCB (Foreign Currency Convertible Bonds) proceeds this year.
In March, Ranbaxy had announced the acquisition of Ethimed NV (Belgium), Therapia (Romania) and the unbranded generic business of GlaxoSmithKline (GSK) in Germany.
In July, the company acquired the Mundogen generic business of GSK, in Spain.
Prior to acquisition, Ranbaxy South Africa, which commenced its commercial operations in 1996, was the sixth biggest generic drug manufacturer.
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