Indian pharmaceutical company Cipla has signed an agreement to fully acquire South Africa-based pharmaceutical manufacturer Mirren for R450m ($33.5m).
Cipla entered the deal through its wholly owned South African subsidiary Cipla Medpro, which produces medicines for public and private sectors.
Founded in 1983, Mirren primarily manufactures and distributes over-the-counter (OTC) medicines in South Africa. The firm additionally has operations in Namibia and Botswana.
Cipla expects the acquisition to enhance its market footprint and growth in the OTC market.
The deal will expand the company’s OTC portfolio with the addition of several of the company’s brands such as Broncol cough syrup, Coryx, Tensopyn and Ultimag.
The transaction is set to boost the firm’s manufacturing footprint in South Africa.
Cipla South Africa CEO Paul Miller said: “We foresee that this transaction will aid Cipla greatly in future by further improving the range of quality medication that we are able to offer South Africans.
“Furthermore, Cipla aims to take full leverage of this proposed transaction to deliver on its ethos of ‘Caring for Life’, by providing quality, affordable medical products.”
The acquisition is subject to approval by the South African Competition Commission and expected to close before the end of September.
Mirren director Lynton Lomas said: “The acquisition by Cipla will help to ensure that, the continued growth that the Mirren brands have achieved over the past three years will be sustained. The wellbeing of Mirren’s dedicated staff was one of the biggest deciding factors during this process.”
For the fiscal year ended 28 February 2018, Mirren reported turnovers of R152m ($11.3m).