RFCL acquires two European companies
13 March 2008
Mumbai: ICICI Ventures company RFCL Ltd has acquired animal healthcare company in Europe and is also in the final stages of negotiations for the acquisition of another fine chemicals company (names not disclosed) in the region.
The combined revenues of the two companies are close to Rs300 crore. RFCL expects the second deal to come through by April and said it would divulge further details later.
Aluri Srinivasa Rao, chairman, RFCL, said, "One of the European acquisitions (animal healthcare) has been sealed and signed and for the other (fine chemicals), we are in six-week exclusivity for negotiations. It is only after this that we can talk more."
The two European acquisitions would be the fifth since last year, as part of the company's strategy of growth and expansion in the inorganic sector. It has already acquired medical diagnostic companies such as Wipro Biomed, Godrej Medical Diagnostics and Alved Pharma and Foods Pvt Ltd in 2007.
RFCL is also planning to acquire two US-based firms, much larger than its own size, in the animal healthcare and fine chemicals sector. "It is early days to comment on the deal as we are one of the 10 companies chosen to look at it," Rao said.
ICICI Ventures acquired RFCL in 2005, which was formerly called Ranbaxy Fine Chemicals Ltd. RFCL operates three major verticals in vitro diagnostics, animal healthcare, laboratory solutions and custom synthesis through its four strategic business units, namely, Diagnova, Vetnex, Rankem and Neosynth.
The company has been growing at a rate of 25 to 30 per cent each year, with revenues of Rs300 crore this fiscal. The company expects to touch Rs500 crore by 2010.
The company is also stepping up its focus on animal health by setting up manufacturing facilities at Haridwar, Uttarakhand and Bharuch in Gujarat. It has invested Rs100 crore for the project.