Aurobindo Pharma expands its presence in Europe with latest acquisition
Aurobindo Pharma has signed a definitive agreement to acquire Apotex’s businesses in Czech Republic, Poland, Spain, Belgium and the Netherlands for 74 million euro. As per the deal, Aurobindo will acquire the commercial infrastructure, including experienced personnel, products, marketing authorizations and dossier licence rights in Poland, the Czech Republic, the Netherlands, Spain and Belgium.
Why is this important
Aurobindo acquired the business for a consideration of EUR74 mn, valuing the business at ~0.56X FY2018 sales.
Aurobindo generated revenues of ~US$675 mn in FY2018, and the acquisition will:
- Enable to accelerate growth by providing market access in Eastern Europe, predominantly, Poland (FY2018 revenues: EUR43.3 mn) and Czech Republic (FY2018 revenues: EUR 16.6 mn), and almost double its revenues in Netherlands to ~US$100 mn.
- Also make Aurobindo the #1 player by volumes in the OTC segment.
- Provide Aurobindo with a manufacturing facility in the Netherlands with ~1.8 bn tablets capacity annually.
While the acquisition will add to Aurobindo’s net debt, taking it to `37 bn in FY2019, the balance sheet remains strong with net debt/EBITDA comfortably below 1X.