In what is the biggest buyout by an Indian company in Europe, Ahmedabad-based Intas Pharmaceutical Ltd acquired the generics business of Actavis in the UK and Ireland, from global generics giant Teva, at a value of £600 million. The company paid 2.4 times Teva UK's revenue in the all-cash deal.
Binish Chudgar, vice-chairman and managing director of Intas, said, "This transaction represents a unique opportunity for Intas to build scale in the UK and in Ireland. It will add to our market-leading hospital franchise and create a strong platform for further European expansion." Intas is one of the top 10 Indian pharmaceutical companies, by revenue, and focuses on super-speciality in central nervous system, nephrology, gastroenterology, urology, orthopaedics, and cardiology-diabetics segments.
Chudgar added, "Through our subsidiary, Accord Healthcare, we have been operating successfully in Europe for more than a decade and this acquisition will make Accord a leading generics player in the UK market. We have a clear plan for the continuation and development of the Barnstable site and the Actavis UK and Ireland team; we look forward to welcoming them to the Intas Group. We are confident that the cultural alignment between Accord and Actavis UK & Ireland will ensure a smooth integration."
Sources from investment banking said a bank consortium, including Mitsubishi UFJ Financial Group, will provide finance to the company for the buyout. A much-watched stake, Intas beat domestic rival Aurobindo Pharma, and global giants Mylan and Novartis for the bid.
"Together we have a great opportunity to build on the strong foundations of our respective organisations; we are excited to join the Intas/Accord family and look forward to an exciting future together," said Sara Vincent, senior vice-president, Actavis UK and Ireland.
