A multimillionaire brother and sister team, Amit Patel, 40, and Meeta Patel, 42, are selling their the pharmaceutical firm Auden Mckenzie to Actavis, the Irish drugs group, which will pay £306 million for the business, on a debt-free basis, plus a two-year royalty on a percentage of gross products on a key drug. The deal does not include Mckenzie’s property portfolio.
The Irish firm has reportedly claimed that when the Allergan and Auden Mckenzie deal finally closes (expectedly by the first quarter), it will become the third-largest pharmaceutical manufacturer in the UK. Reports have also suggested that this latest acquisition will be made with cash and are subject to approval by the regulatory authorities.
As a privately held company Auden Mckenzie's financial figures are not disclosed, but Actavis described the business as "profitable and growing". In 2012/13 the company earned a reported £29m on sales of around £52m. Shareholders in Auden Mckenzie will also reportedly get a two-year royalty on a percentage of gross profits for one of the company's products.
Robert Stewart, Actavis' chief operating officer has reportedly said, "This strategic combination is highly synergistic with our UK business, is immediately and highly accretive and reflects our commitment to invest to achieve a top position in key international markets."
Amit Patel, Managing Director of Auden Mckenize, said the two companies shared a "dynamic and entrepreneurial approach to developing and marketing generic medicines."
Ruislip-based Auden Mckenzie specialises in injectable products such as Synastone (methadone), which is licensed for the treatment of heroin addiction and as an alternative to morphine for pain relief.
The fast-growing west London operation was founded in 2001, holds more than 120 pharmaceutical product licenses and sells its merchandise in 30 countries.
It was the Amit Patel's father who identified a niche market for generic versions of such highly specialised medicines. The business was launched with only £150,000 seed capital and staffed only by the three family members. It now employs over 79 people and supplies to hospitals, pharmacies and wholesalers.
Speaking about his expert training, Amit reportedly said, “I did not need to go to business school, because I learned everything from watching my father.
“To be brutally honest, when I first started in my early twenties, material possessions were a very motivating factor, but as I have grown older it has been a sense of achievement to provide life-saving medicines that has proved most satisfying.”
Mr Patel and his sister were ranked joint-264th in the Sunday Times Rich List last year, with an estimated combined net worth of £360 million.
Mr Patel, who owns 60 per cent of the business, and Ms Patel, who owns the rest, reportedly shared a dividend payment of just over £4 million last year.
