Nicholas Piramal to acquire Pfizer''s UK Facility
Piramal India L
15 June 2006
Nicholas Piramal India Ltd has announced its intention to acquire the manufacturing facility of Pfizer, Inc. located at Morpeth, Northumberland., UK. The site is one of Pfizer's global, high-quality, integrated facitities, with end-to-end production and supply chain capabilities that cover APIs, finished dosage, packaging and distribution.
This transaction is Nicholas Piramal third acquisition in the UK after its acquisition of Rhodia's inhalation Anaesthetics business in December 2004 and acquisition of Avecia's Custom Manufacturing business in December 2005.
Morpeth is a supply hub for certain Pfizer products supplied to USA, Europe and Japan and its facilities are approved by US FDA and UK MHRA. The acquisition would expand Nicholas Piramal 's global footprint, particularly in the finished API, contained finished dosage, packaging and supply chain areas.
With the acquisition of Morpeth, Nicholas Piramal has gained strategic entry into the global souring network of Pfizer Inc as the company will will become the biggest supplier (in terms of spend) within Pfizer's global contract manufacturing network, with supplies to over 100 global markets.
Its 100-per cent UK subsidiary, NPIL Pharmaceuticals (UK) Ltd (earlier, Avecia Pharmaceuticals, UK) has entered into an agreement to acquire the Morpeth Facility on an asset purchase basis.
The transaction includes a supply agreement up till November 2011 totaling potential revenues above $350 million.
The transaction is on a liability and cash-free basis. The company anticipates funding the total consideration to be paid and any needed incremental net current assets from its projected pre-acquisition internal accruals of FY2007.
Nicholas Piramal expects significant synergies of its current operations and business pipeline with Morpeth. The Morpeth acquisition will be EPS accretive from FY2007.