Johannesburg – Ascendis is buying Cipla Agrimed and Cipla
Vet for R375 million as it sees the deal as an “excellent strategic fit” for its
Phyto-Vet division.
In a statement issued on Monday, the healthcare company
said there was a potential adjustment to reflect a price band of R250 million
and R500 million in relation to actual working capital, net debt and earnings
before interest, tax, depreciation and amortisation for the period to end
March.
Cipla Vet operates in the companion animal segment with
sales to more than 1 000 outlets through via veterinary practices, veterinary
shops, equine outlets and wholesalers. Cipla Agrimed operates in the commercial
animals segment and sells unique Ivermectin, Doramectin and Moxidectin
combinations with vitamins and minerals.
Ascendis says its strategy is to create a synergistic
group of health product brands that cover the value chain from imports of raw
materials, manufacturing and distribution to consumers via retail and direct
selling channels, spanning across human, plant and animal health.
Read also: Ascendis wraps up R7.3bn in deals
The deals, therefore, are a fit for Phyto-Vet division of
Ascendis as they offers a presence in therapeutic areas in which Ascendis did
not previously have strong representation, it explains.
It notes expansion into the veterinary pharma industry
complements Ascendis’ existing presence in the pharma industry and Phyto-Vet’s
existing sub-Saharan African biosciences business.
In addition, Phyto-Vet has plans to increase
international revenue by opening new markets in sub-Saharan Africa, which will
be aided through the deal.
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