Recipharm acquires remaining shares in Nitin Lifesciences Ltd
Recipharm AB (publ) today announces that it has reached an agreement to acquire the remaining 26 per cent of the shares of Nitin Lifesciences Limited which were owned by members of the founding Sobti family.
The consideration is INR 2,800 million (SEK 351 million1) on a cash and debt free basis whereof INR 600 million (SEK 75 million1) will be paid in newly issued Recipharm shares (RECI-B). The acquisition will be completed in two steps; the cash part today and the part paid in Recipharm shares later during the first half of 2018.
Thomas Eldered, CEO of Recipharm said “I have been particularly pleased with the way the performance in Nitin Lifesciences has developed since it became part of the Recipharm Group. Both sales and margins have grown in the business despite the recent macro-economic volatility in India and we foresee this favorable development to continue. The transaction will allow us to combine and better exploit operational synergies with our other Indian business. The equity investment will align interests of the Sobti family. As such, I have great pleasure in announcing that current chief executives and members of the founding family Dr Chetan Sobti and Mr Nitin Sobti shall not only continue to spearhead the current business but also in addition take on the responsibility to develop and grow Recipharm’s total business in the Indian and emerging markets”.
- Current minority interest in Nitin Lifesciences Ltd is acquired
- Opportunity for operational synergies in Recipharm’s Indian businesses
- Executive management in India remains unchanged
- Equity issue serves to align interests with the Sobti family
- Transaction expected to be accretive to Recipharm EPS in 2018
1/ Exchange rate 1 INR = 0.1254 SEK
Thomas Eldered, CEO, telephone: +46 8 602 52 10
Henrik Stenqvist, CFO, firstname.lastname@example.org, telephone: +46 8 602 52 00
This information is information that Recipharm AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, on 2 January 2018, at 08:30 CET.
Recipharm is a leading Contract Development and Manufacturing Organisation (CDMO) in the pharmaceutical industry employing around 5,000 employees. Recipharm offers manufacturing services of pharmaceuticals in various dosage forms, production of clinical trial material and APIs, and pharmaceutical product development. Recipharm manufactures several hundred different products to customers ranging from big pharma to smaller research and development companies. Recipharm’s turnover is approximately SEK 5.3 billion and the company operates development and manufacturing facilities in France, Germany, India, Israel, Italy, Portugal, Spain, Sweden, the UK and the US and is headquartered in Stockholm, Sweden. The Recipharm B-share (RECI B) is listed on Nasdaq Stockholm.
For more information on Recipharm and our services, please visit www.recipharm.com