Cipla Ltd, India’s second-largest drugmaker by market value, has agreed to acquire South Africa’s Mirren (Pty) Ltd to strengthen its foothold in the African nation.
The Indian company will pay 450 million South African rand (Rs 228 crore or $33 million) for Mirren in cash, it said in a stock-exchange filing.
Paul Miller, CEO at Cipla South Africa, said that the transaction will enhance Cipla’s OTC portfolio by adding Mirren’s well-established brands such as Bronco! cough syrup, Coryx, Tensopyn and Ultimag. The deal will also increase Cipla’s local manufacturing footprint.
Mirren, set up in 1983, makes over-the-counter (OTC) pharmaceutical products. It is South Africa’s fourth-largest pharmaceutical company in the private sector, and also has presence in Namibia and Botswana.
Mirren’s revenue for the year through February 2018 rose to 152 million rand from 123 million rand the year before and 83 million rand in 2015-16.
The deal is likely to be completed by the end of September.
The transaction is subject to the approval by the Competition Commission of South Africa.
The drugmaker will acquire Mirren through wholly owned unit Cipla Medpro South Africa (Pty) Ltd. Medpro was previously Cipla’s South African distribution partner; Cipla bought it in 2013 for $512 million to establish its presence in the region.
Mirren is the company’s third deal in South Africa within a year and a half.
The company had, in April last year, agreed to acquire pharmaceuticals company Anmarate Pty Ltd for about $1.8 million. The previous month, it had sold its animal health business in the African nation to focus on core areas.
Cipla, which trails only Sun Pharmaceutical Industries Ltd among Indian drugmakers by market value, has been streamlining its businesses globally, acquiring products and businesses in some territories while also shedding some businesses to intensify focus on core areas.
Last year, for instance, it sold its indirect subsidiary in Croatia.
Among other deals, Cipla made two large acquisitions in the US for over $550 million in late 2015.
Source: VC Circle