Strides Shasun, a vertically integrated pharmaceutical company based in Bangalore, India, has agreed to acquire controlling stakes in two companies, one focused in Africa and the other in Australia.

In the first transaction, Strides Shasun has agreed to acquire a controlling stake (51%) in Universal Corporation Limited, a pharmaceutical manufacturing and marketing company based in Nairobi, Kenya for an initial amount of $11 million and a performance-related earn-out capped at $3 mllion for achieving an EBITDA (earnings before interest, taxes, depreciation, and amortization) of $2.95 million for 2015. The acquisition is to be made through Strides Pharma (Cyprus) Limited, a wholly owned subsidiary of the Strides Shasun.

Universal has supply contracts with key donor agencies and has a site prequalified by the World Health Organization, which the company says is only one of two such sites in Sub–Saharan Africa, other than South Africa. Universal has a WHO Pre-Qualified facility, which is engaged in the manufacturing of tablets, capsules, ORS, creams, ointments and liquids. Universal has obtained regulatory approvals from regulatory agencies of, Kenya, Uganda, Tanzania, Ethiopia, Ghana, Zambia, Zimbabwe, Malawi, Namibia, Ivory Coast & Sierra Leone. Universal Corporation reported revenues of $22.40 million for the year ended December 2015. The current management team of Universal will continue to drive the business, with technical support from Strides Shasun. Strides Shasun plans to transfer several strategic institutional products to this facility as Donor & government procurement agencies have a preference for “Made in Africa” products.

Strides Shasun has four business verticals: regulated markets, emerging markets, institutional business and pharmaceutical services & active ingredients. The company has a global manufacturing foo print with 12 manufacturing facilities, which include six facilities approved the US Food and Drug Administration and six facilities for the emerging markets. The company has two dedicated R&D facilities in India with global filing capabilities and a commercial footprint in 85 countries.

The transaction is subject to statutory approvals and customary closing conditions and is expected to be close by June 30, 2016.

In another transaction, Strides Shasun has agreed to acquire a strategic stake (51%) in Generic Partners Holdings Co. Pty Ltd., an Australian pharmaceutical supply and research company for AUD 15 million ($10.6 million) upfront and AUD 10 million ($7.1 million) to fund future R&D.

Generic Partners is headquartered in Melbourne, Australia and currently develops and licenses out products to customers in Australia, Europe, Canada, the US and South Africa. Generic Partners has offices in Melbourne (Australia), Pune (India), Toronto (Canada), the United Kingdom, and an investment in a pharma company in South Africa. Generic Partners reported revenues of AUD 38.9 million ($27.4 million) for the year ended June 30, 2015.

The acquisition would provide Strides Shasun with 47 commercial marketing authorizations, 22 registrations pending with Australian regulatory authorities, and 32 generic drug candidates. The current management team of Generic Partners led by its CEO and Managing Director Sanjiv Puri will continue to manage the business independently. Strides Shasun’s subsidiary, Arrow Pharmaceuticals Pty Ltd, will consolidate its R&D initiatives for the Australian market under Generic Partners.

The transaction is subject to statutory approvals and customary closing conditions and is expected to close by April 30, 2016.

Source: Strides Shasun (Universal acquisition) and Strides Shasun (Generic Partners)