Piramal buys US-based Minrad to strengthen its position in anesthetics

Piramal Healthcare Limited, one of India's largest pharmaceutical and healthcare companies, and Minrad International, Inc, a provider of generic inhalation anaesthetics, jointly announced that they have signed a definitive merger agreement for Piramal to acquire Minrad.

Under the terms of the agreement, Minrad will merge with a newly incorporated wholly-owned subsidiary of Piramal.

If the merger is completed, stockholders of Minrad will receive $0.12 per share in cash.

In connection with the merger agreement, Piramal has also agreed to acquire Minrad's 8 per cent senior secured convertible notes from the note holders.

The total consideration for the merger and acquisition of the notes, in cash plus the assumption of debt, will be approximately $40 million.

The transaction is conditioned upon approval by Minrad's stockholders and other customary closing conditions. It is not subject to any financing contingency and is expected to close in the first quarter of 2009.