Super Religare Laboratories is acquiring Ajay Piramal's diagnostic chain - Piramal Diagnostic Services Pvt. Ltd. for about Rs 600 Cr. Mumbai based Metropolis was also interested in acquiring the diagnostic chain.

Piramal Diagnostics has 124 diagnostic centres in 85 cities with over 400 sample collection centres.

If the deal goes through, it would be second business sale for Piramal in a month's time, earlier it sold its domestic formulation business to US-based Abbott Laboratories for $3.7 Bn last month.

Piramal Healthcare is now left with contract research and manufacturing services, critical care and over-the-counter drugs businesses besides diagnostics, that cumulatively generate revenues of Rs 1,700 Cr.

Transaction Reference: Financial Express

Piramal Healthcare is planning to foray into phytopharma through launch of herbal products in the next financial year and has plans to acquire more drug brands and diagnostics chains to expand its footprint across India.

It recently bought i-Pill brand from Cipla for Rs 95 cr in an all cash deal.

The company acquired Minrad for $50 mn in 2009 to gain access to sevoflurane and desflurane, which are key IA products in the US market.

In December 2009, Piramal Healthcare had approved proposal for raising funds up to Rs. 1,000 cr by diluting equity by about 10-12% in order to repay its Rs 1400 Cr debt.

The Singh brothers - promoters of Religare, have been on acquisition spree after selling their 35% stake in pharma company Ranbaxy Laboratories for about Rs 10,000 Cr in June 2008.

They have been acquiring companies in the BFSI and the healthcare domains. Super Religare bought out Dubai-based Mena Healthcare facility for $20 Mn in late 2008. Last year, hospital chain Fortis Healthcare also promoted by the Singh brothers bought 10 hospitals from rival Wockhardt for Rs 900 Cr.

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