Wockhardt acquires Irish generic co
Wockhardt Ltd has acquired Pinewood Laboratories Ltd, an Irish generic-drugs maker in an all-cash deal worth $150 million (about Rs 686 crore).
Pinewood reported sales of over $70 million for the year ended June 2006.
Wockhardt has been scouting for acquisition targets in the UK and the US for some time now. The latest deal gives Wockhardt a larger footprint in Europe spread over the UK, Ireland and Germany, Wockhardt Chairman, Mr Habil Khorakiwala, said in a statement to the Bombay Stock Exchange. The company’s European business will now exceed $200 million, accounting for almost half of Wockhardt’s total sales, he added.
Pinewood is Wockhardt’s fourth European acquisition, after Wallis, CP Pharmaceuticals (both in UK) and Esparma in Germany. UK and Germany are Europe’s leading generic markets
UK consolidation
As almost half of Pinewood’s sales come from the UK, the acquisition will reinforce Wockhardt’s position in the UK where it is already the largest generic company from India and the second largest player in hospital sales, the company said.
Strategic fit
The acquisition has a strategic fit with Wockhardt, as Pinewood’s liquids and creams business complements Wockhardt UK’s strengths in injectable and solid dosages, it added. Wockhardt UK can also leverage Pinewood’s marketing and distribution system and its customer base in Ireland for its vast range of hospital products, the announcement said.
Wockhardt shares closed marginally up at Rs 405.95 on the BSE.
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