Aanjaneya Lifecare acquires Apex Drugs in a Rs250-crore deal

Mumbai-based bulk drugs manufacturer Aanjaneya Lifecare Ltd today announced the acquisition of Hyderabad-based integrated pharma intermediates manufacturer Apex Drugs and Intermediates Ltd.

The acquisition values Apex Drugs at Rs250 crore, including debt of Rs185 crore and equity dilution of Rs65 crore, Aanjaneya said in a filing with the Bombay Stock Exchange (BSE).

The acquisition, which involves merger of the two companies, covers Apex Drug's assets, businesses, clients, licensees and employees, so that Aanjaneya emerges a fully integrated company post acquisition.

Aanjaneya would gain access to Apex's product portfolio of drugs and intermediates and also could cross-sell the company's own products to Apex customers.

Post acquisition Anjaneya will have approximate sales of Rs700 crore and pre-tax profit of Rs130 crore. The company will have a debt to equity ratio of less than 1, according to the filing.

Aanjaneya plans to expand its product portfolio to include Apex's API products for AIDS, HIV, diabetes, ACE inhibitors and CNS. The acquisition has helped the company save time, which would otherwise have taken 3 to 4 years to obtain clearances, the company said.