Cipla To Acquire Uganda Based Quality Chemical
BSE Listed Cipla Limited, today announced that it has entered into a definitive agreement to acquire a 51% stake in Quality Chemicals Limited for R190.96 Cr ($30.05 Mn) of which $8 Mn payable upfront on completion and 5 equal installments of USD 4.41 million payable at annual intervals.
The acquisition will be routed through Cipla (EU) Limited UK, the wholly owned subsidiary of Cipla Limited and it will strengthen Cipla’s overall presence in the African market and the deal is expected to be completed by end of July 2015, subject to regulatory approvals.
Founded in 1997, Cipla Quality Chemical Industries Ltd (formerly Quality Chemicals Ltd) is engaged in the business of import and distribution of pharmaceutical and consumer products. It also manufactures and delivers anti-retroviral drugs and artemisinin-based combination therapies-ACTs to combat HIV/AIDS and malaria. The company holds 22.05% stake in Cipla's subsidiary in Uganda, Cipla Quality Chemical Industries.
Consequent to acquisition, Cipla’s effective stake (held through its subsidiaries) in Cipla Quality Chemical will increase from the existing 51.05% to 62.30%.
The turnover of QCL for the financial year ending Dec 2012, Dec 2013 and Dec 2014 was UGX15.76 billion ($5.28 million), UGX17.02 billion ($5.71 million) and UGX14.85 billion ($4.98 million), respectively.
Earlier this year, Cipla Limited has entered into a definitive agreement for acquisition of 100% stake in Brazilian Duomed Produtos Farmaceuticos for R2.6 Cr, said in a filing to the BSE. The deal will give a nod to import and distribute pharmaceutical products in Brazil.