Indian company Aurobindo Pharma has signed an agreement through its wholly owned subsidiary Agile Pharma to acquire Portugal-based Generis Farmacêutica from Magnum Capital Partners for €135m.
Generis manufactures and sells pharmaceutical products within Portugal.
As part of the deal, Aurobindo will acquire the manufacturing facility in Amadora, Portugal, which has the capacity to manufacture 1.2bn tablets / capsules / sachets per year.
This facility will allow the company to better serve the local Portuguese market, as well as the broader European market, with specific regard to small volume products.
The agreement consolidates the company’s footprint in Portugal, which comprises Aurovitas, Unipessoal LDA and Aurobindo Pharma (Portugal), Unipessoal.
The consolidated APL group will have a generic product portfolio, consisting of 271 products.
Aurobindo Pharma European Operations senior vice-president Muralidharan said: “The acquisition of Generis, by leveraging its strong portfolio and unrivalled brand recognition, will allow us to establish ourselves as the top generics player in the Portuguese market.
“This acquisition, coupled with our past acquisition activity, underlines our commitment to focus on growth initiatives in European markets, and will be a key driver of growth for the future.”
The acquired business is expected to have net sales of approximately €72m this year, compared to €64.8m last year.
Synergies from Aurobindo’s vertical integration and pipeline breadth and improvement in Amadora plant capacity utilisation are expected to be €2m in 2018, and €5m in 2019.
Generis Farmacêutica CEO Paulo Lilaia said: “Generis will benefit immensely from Aurobindo’s vertical integration and strong product pipeline.
“Our large portfolio, along with our unmatched commercial presence in Portugal, will allow Aurobindo to consolidate its market position in Portugal.”
The transaction will close after obtaining necessary approvals from Portuguese authorities.