The Swedish CDMO company will acquire majority stake in the Indian Nitin Lifesciences, a sterile injectables CMO, currently owned by the Sobti family.
Recipharm will acquire 74 percent of the shares for an estimated purchase consideration of INR 6,712 million (SEK 872 million) on a cash and debt free basis. Recipharm will join forces with the founding and managing owners, the Sobti family, in order to further grow the current business with demanding domestic and multinational customers into a leading position in the Indian sterile CDMO market.
“I am delighted to be entering into this partnership with the current owners who have successfully expanded and grown the company to what it is today. It is our stated aim to have a more global footprint and participate in the good opportunities that emerging markets bring. The Indian market is particularly attractive showing high growth levels and the transaction firmly establishes Recipharm’s emerging market strategy. Nitin can also be used as a platform for entry into other regions. We are fortunate to have found such a high quality business and management and we are looking forward to utilizing this opportunity to support our current customers’ strategy in the Indian domestic market,” says Thomas Eldered, CEO of Recipharm.
“I am very much looking forward to this partnership with Recipharm. We have grown tremendously in the domestic market, attracting new multinational customers by offering high quality and service. We believe that with the support and network of Recipharm, we shall be able to further expand and continue to grow both domestically and outside the Indian market,” says Dr Chetan Sobti, CEO of Nitin.
The combined entity will have enhanced scale, reach and profitability with current pro-forma revenue of SEK 3.5 billion (+13 %) and EBITDA of SEK 607 million (+19 %). 1,2,3. The acquisition will further strengthen Recipharm’s global position in sterile injectables including lyophilization. Completion of the acquisition is expected in Q1 2016 following Indian Foreign Investment Promotion Board approval.