Ranbaxy Laboratories has acquired Be-Tabs Pharmaceuticals, the fifth-largest generics company in South Africa, for $70 million.
According to an official release issued by the company to the BSE on Friday, the transactions, subject to requisite approvals from South Africa's Competition Council authority, are expected to be completed in the first quarter of the year 2007.
The acquisition will be EPS accretive in year one. The acquisition further strengthens the company's South Africa operations and places it amongst the top 5 generic players in the market.
The transactions will be funded from the company's FCCB
proceeds. The transaction is valued at 2.2 times of sales and 7.7 times of EBITDA multiples, the release added.
Commenting on the acquisition, Malvinder Mohan Singh, CEO and managing director, of Ranbaxy said: "The acquisition of Be-Tabs' results in considerable synergies and further strengthens Ranbaxy's foothold in South Africa. It reinforces our position by expanding our portfolio in a key market that is exhibiting strong growth potential. The move will help us to provide effective disease management solutions in support of the government's objective to make healthcare affordable to a wider cross-section of the population."