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Recipharm completes acquisition of majority stake in Nitin Lifesciences

 

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Recipharm AB, has completed the acquisition of a majority stake in Nitin Lifesciences Ltd, an Indian sterile injectables CMO, currently owned by the Sobti family.Recipharm has acquired 74 per cent of the shares for Rs. 6,713 million (SEK 824 million) on a cash and debt free basis.

The combined entity will have enhanced scale, reach and profitability. Nitin Lifesciences had 2015 net sales of approximately Rs. 970 million (SEK 391 million), corresponding to 12 per cent of Recipharm’s 2015 total net sales. The EBITDA margin 2015 was approximately 24 per cent

Moreover Recipharm’s global position in sterile injectables including lyophilization will be further strengthened.The implied value for 100 per cent of Nitin equates to Rs. 9,071 million (SEK 1,114 million)and represents approximately 11.7 times 2015 EBITDA of Rs. 721 million (SEK 95 million).

Nitin Lifesciences Ltd is a rapidly growing Indian pharmaceutical company with a strong presence in injectable manufacturing. Established in 1994 by M.M. Sobti and the late M.V. Kakkar, Nitin has emerged as one of the largest small volume parenteral manufacturers in India and is engaged in contract manufacturing to major Indian and international pharmaceutical companies.

Headquartered at Karnal in Northern India, Nitin has three modern facilities for small volume parenterals located at Karnal (Haryana) and at Paonta Sahib (Himachal Pradesh). The newest facility in Paonta Sahib was taken into operations in 2014 and the business provides high technology pharmaceutical manufacturing solutions.

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