Piramal Enterprises to acquire Ash Stevens Inc for Rs 350 cr

The Dollar Business Bureau

Piramal Enterprises Ltd, a flagship firm of Piramal Group, announced on Tuesday that it is set to acquire 100 percent stake in Ash Stevens Inc, based in the US, in a cash deal for up to $52.95 million (around Rs.350 crore).

The firm's "wholly-owned US subsidiary has entered into an agreement to acquire 100 percent stake in Ash Stevens Inc in all cash deal for a total consideration of $42.95 million plus an earn-out consideration capped at $10 million, subject to achievement of certain EBITDA targets, payable over next six months," the company said in a release.

This potential deal is likely to be finished by end of this month, it added.

“The Ash Stevens’ acquisition fits well with Piramal’s strategy to create an asset platform which provides value to its collaborators and partners. The firm will also add high potency abilities to the solutions we offer to our clients,” said Vivek Sharma, CEO - Pharma Solutions Business, Piramal Enterprises.

High Potency Active Pharmaceutical Ingredients (HPAPI) is one of the fastest developing segments in the pharma sector and over half of the HPAPIs are drugs for cancer treatment, he added.

Commenting on the deal, Stephen Munk, CEO, Ash Stevens Inc, said, "We have already found out the areas where we can together develop significant value, and will be rapidly moving further in order to achieve those goals.”

“We are looking forward to work with Piramal’s management and leadership team, to create API solutions that provide benefits to customers and improve patients’ lives,” he added.

Piramal Enterprises Limited (PEL) is among India’s big diversified companies, having its presence in the fields of Healthcare, Healthcare Information Management and Financial Services. The company has recorded consolidated revenues of around $1 billion in the fiscal of 2016, out of which 61 percent came from overseas.