Dilip Shanghvi has pulled off another acquisition. Sun Pharmaceutical Industries Ltd. announced that it will acquire 85.1 percent stake in a Russian pharmaceutical company JSC Biosintez, for a total consideration of $60 million.
Sun will pay $24 million for the equity stake and also assume $36 million of the Russian firm’s debt, the company said in its exchange filing. The transaction is expected to be completed by the end of 2016, subject to approval from Russian Federal Anti Monopoly Service and other closing conditions.
This transaction gives us access to local manufacturing capability across multiple dosage forms in Russia, enabling us to serve the Russia pharmaceutical market more effectively.Aalok Shanghvi, Head - Emerging Markets, Sun Pharma (Source: Exchange Filing)
Biosintez focusses on the hospital segments in Russia and its manufacturing capabilities range from injections to creams and gels. The company clocked annual revenues of approximately $52 million in 2015.
The enterprise value to sales ratio for the deal stands at 1.15 times.
Shanghvi, who has pursued an acquisition-led strategy for Sun, has struck more than 20 deals worth around $5 billion since 2001, according to data compiled by Bloomberg.
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