Sanofi-aventis to acquire Symbion Holdings for $544 million

French drug maker Sanofi-Aventis today said it had signed a binding agreement to acquire Australia's largest distributor of vitamin supplements, Symbion CP Holdings Pty Limited, from its owner Primary Health Care Ltd  for A$560 million ($544 million / approximately Rs2325 crore).

Diagnostics and medical centres operator Primary had acquired Symbion in a A$2.7-billion takeover of medical group Symbion Health earlier in February this year, and is divesting the acquired firm's assets to reduce debt incurred to fund the acquisition. On the block for the divestiture were the consumer and pharmacy divisions.

Analysts had expected Primary to receive less from after grocery wholesaler Metcash Ltd withdrew its bid.A divestiture of the pharmacy and consumer business could have netted Primary around A$950 million. A standalone sale of the consumer business was expected to fetch it around A$400 million.

Metcash had originally formed a joint venture bid with Sigma Pharmaceuticals Ltd, for the acuisition, dropped out of the bidding last week.

Symbion manufactures, markets and distributes nutraceuticals (vitamins and mineral supplements) and over the counter brands throughout Australia and New Zealand. It has a strong portfolio of premium brands including Natures Own, Cenovis, Bio-organics, Golden Glow and Microgenics and is the market leader, with an estimated 21 per cent market share.

Symbion Consumer's sales amounted to around A$190 million in 2007.