Lupin Ltd. will acquire a portfolio of brands from Anglo-French Drugs & Industries Ltd. and its associates to strengthen its share in vitamins, minerals and supplements, and central nervous system segments.
Lupin's board in its meeting on Jan. 17 approved the acquisition for a lump sum cash consideration of Rs 325 crore, including working capital (normalised inventory of three months) amounting to Rs 9 crore on a cash and debt-free basis, according to its exchange filing.
The acquisition, according to the Mumbai-based drugmaker, is expected to be completed by March 2022, subject to execution of definitive agreements and completion of certain precedent conditions. No government or regulatory approvals were required for the deal.
Lupin expects this deal to be Ebitda margin-accretive. The turnover of the acquired brands for the year ended March 2021, it said, stood at Rs 94.6 crore.
Anglo-French Drugs and its associates have a presence in India and overseas, and the company had a total turnover of Rs 153 crore in FY21.
Shares of Lupin had risen 2% after the announcement but closed flat compared to a 0.9% fall in the benchmark Sensex.
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