Cipla To Acquire South Africa's Actor Pharma For $48.6 Million

Cipla Ltd.'s wholly-owned South African subsidiary—Cipla Medpro South Africa (Pty) Ltd.—entered into a binding term sheet to acquire a 100% stake in Actor Holdings (Pty) Ltd., a privately owned pharmaceutical company specialising in consumer health and generic medicine.

The consideration has been fixed at ZAR 900 million (approx. $48.6 million or around Rs 400 crore) in cash for 920 equity shares representing a 100% equity stake, according to the exchange filing dated Sept. 4.

This was a strategic acquisition for Cipla South Africa to unlock future growth opportunities and leverage cost synergies in the South African market, Cipla said in the filing.

The acquiree company—Actor Pharma—was founded in 2009 and is currently the fifth largest privately owned over-the-counter player in the South African private market. It specialises in OTC and generic medicine with established consumer brands and identified niche prescription markets in women's health, nasal, cough and cold, and baby and child, the filing said.

The proposed acquisition is subject to the signing of the share purchase agreement, which is expected within 14 days from the date of the binding term sheet.

The transaction is expected to be completed within a maximum period of four months from the date of signing the share purchase agreement.

It will also require approval from the South African Competition Commission.

Umang Vohra, global managing director and chief executive officer at Cipla, said, "This is in line with our strategy of strengthening our OTC and wellness portfolio."

According to Paul Miller, chief executive officer of Cipla South Africa, "This is a unique opportunity that helps to build Cipla's OTC portfolio, providing the business with a more balanced revenue contribution between the prescription and over-the-counter businesses and continue to provide additional quality medicines for consumers."

Actor Pharma's revenue for the last three years—FY23, FY22, and FY21—stood at ZAR 233.6 million ($2.6 million or around Rs 100 crore), ZAR 199.3 million ($10.8 million or around Rs 90 crore), and ZAR 154.4 million ($8.3 million or around Rs 70 crore), respectively.

Shares of Cipla closed 0.49% lower at Rs 1,238.90 apiece, as compared with a 0.37% rise in the benchmark Sensex.