Strides Arcolab Limited has sold 94% stake in subsidiary – Ascent Pharmahealth Limited with operations in Austria and Southeast Asia to Watson Pharmaceuticals Inc for an enterprise value of AU$375 Mn.

As a part of transaction, Watson also acquired the balance 6% from Dennis Batas – CEO of Ascent.

Watson funded the transaction using cash-on-hand and borrowings from its revolving credit facility. The deal is expected to be immediately accretive to 2012 non-GAAP earnings.

Jefferies International Ltd was the financial advisor to Strides Arcolab.

According to press release, with this deal Strides Arcolab will now focus on core high growth Agile speacialities business unit.

According to Paul Bisaro, Watson's President and CEO, the acquisition of Ascent provides Watson with a successful commercial structure in both Australia and Southeast Asia; Watson will retain the sales and marketing teams that have driven Ascent's growth; it will have a larger portfolio of products, and gain a broader pipeline of products to support continued growth.

In May 2008, Strides Arcolab picked up 50.1% stake in Ascent Pharmahealth, erstwhile Genepharm Australasia Ltd, and subsequently raised holding to 57%, while in 2010 it acquired the remaining stake.

Ascent Pharmahealth services markets in Australia, Singapore, Malaysia, Hong Kong, Vietnam, Thailand and other Asian countries with a range of generic pharmaceuticals, consumer skincare and over the-counter (OTC) medicines.

Ascent has a regional manufacturing facility located in Singapore which manufactures prescription and OTC products in varied dosage forms for the Southeast Asia market. Its well established brands include Avene (skincare), Hairy Lemon (OTC) and Estelle (private prescription medicine) and Dermorganics (organic skincare).

The company employs approximately 300 employees in Australia and Southeast Asia.

Watson Pharmaceuticals, Inc. is an integrated global specialty pharmaceutical company. The Company is engaged in the development, manufacturing, marketing and distribution of generic pharmaceuticals and specialized branded pharmaceutical products focused on Urology and Women's Health.

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KVEZAR VIEW

  DEAL TRACKER FOR

Date	Transaction	Type	Buyer	Size ($mn)
24/01/12	Strides Arcolab - Ascent Pharmahealth - Watson Pharmaceuticals	M&A	Watson Pharmaceuticals Inc	395.61
16/03/10	Ascent Pharmahealth-Strides Arcolab(Stake Hike)	M&A	Strides Arcolab Limited	43.00
29/04/08	Ascent Pharmahealth - Strides Arcolab Ltd.	M&A	Strides Arcolab Limited	-
07/02/08	Ascent Pharmahealth - Strides Arcolab Ltd.	M&A	Strides Arcolab Limited	-

 

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  Profiles

Company
Name	Promoters	Office	Competitor	Website
Strides Arcolab Limited	Padma Kumar Pillai & Family Chayadeep Properties Private Limited K R Ravishankar Arun Kumar Caryl Pharma Private Limited Agnus Holdings Private Limited Arcolab (India) Private Limited	201 Devavrata SOC 17, Vashi, New Mumbai-400705	Cipla Limited Lupin Limited Wockhardt Hospitals Limited Mylan Laboratories Limited (Formerly Matrix Laboratories Ltd) Sun Pharmaceutical Industries Limited Dr. Reddy's Laboratories Limited Bharat Serums & Vaccines Limited	www.stridesarco.com

  Advisor

Jefferies India Private Limited