Dishman Pharmaceuticals & Chemicals Ltd has announced the acquisition of Carbogen AMC1S AG, a Swiss research-based company from Solutia Europe SA / NV (SESA) for around $75 million.
The purchase price included around $9 million as working capital and took over the shares and assets of Carbogen AMC1S, through its wholly owned subsidiary, Dishman Pharma Solutions AG (DPS) in Brussels yesterday, but with retrospective effect from 1 August, 2006.
Dishman had reached a definitive agreement to purchase the pharmaceutical services business of Solutia Inc., comprising Carbogen AG and AMCIS AG, now merged into one entity in May, 2006.
Carbogen AMC1S has three production facilities in Switzerland for the manufacture of high potent high value products
Dishman acquired Carbogen AMC1S as a debt-free company and all intellectual property, patents and trademarks, customer contract as well as employees of the pharmaceutical services business have been included in the transaction.
The entire transaction was financed through share capital contribution $22.50 million by Dishman Pharma in its subsidiary and a syndicate loan of $ 52.50 million by ICICI Bank and Rabo International through its Singapore branch to DPS.
Solutia's pharmaceutical services business has world-class research and development facilities at three sites in Switzerland in Aarau, Bubendorl, and Neuland. Carbogen AMCIS differentiates itself by the quality of its technical capabilities and its integrated platform, which provides seamless solutions to the worlds leading pharmaceutical and biotechnology companies.
During the year 2005, the business had an audited turnover of equivalent to around Rs308 crore.
Dishman expects to enhance the business prospects of Carbogen AMCIS by driving synergies between the two companies, expanding the product suite and renewing the focus on key accounts will enhance the scale of operations.
It feels jointly the Indian and Swiss businesses can serve the entire drug life cycle of 15-20 years. This acquisition will boost the Indian acquirer's contract manufacturing business from CARBOGEN customers and will now be the only contract manufacturing organisation in India with high potency manufacturing capability.