Strides Arcolab buys Grandix Pharmaceuticals

Pharma firm Strides Arcolab said on Monday it has acquired Chennai-based Grandix Pharmaceuticals and its subsidiary Grandix Laboratories for over Rs 98 crore (about $24 million).

The company has signed a definitive agreement to acquire 100 per cent of Grandix Pharmaceuticals and its subsidiary Grandix Laboratories on a cash and debt free basis, Strides Arcolab said in a communique to the Bombay Stock Exchange.

As Strides has no domestic presence, Grandix would be the springboard to launch a national base, it added.

Besides, the management of Grandix would bring the branding expertise for Strides Arcolab's growing branded business worldwide, the company said.

Pricewaterhouse Coopers acted as an independent valuer of the transaction.

Earlier in April, the board of directors had given their in-principle approval for the acquisition of Grandix Pharmaceuticals from its existing shareholders.

Strides Arcolab also plans to increase its medical representative's strength to 400 by July-end to expand gradually to cover the entire country.

For the financial year 2006, Grandix posted sales of Rs 48.50 crore (Rs 485 million) and EBITDA of Rs 10.89 crore (Rs 108.9 million). The company's sales are expected to grow at over 30 per cent in 2007.

Shares of Strides Arcolab were trading at Rs 334.70, up 1.56 per cent on BSE in afternoon trade.