Sanofi Aventis Acquire Universal Medicare’s Nutraceutical Business
Aventis Pharma Limited (part of the Sanofi Group) announced on 24th August, 2011 that it has entered into a definitive agreement to acquire Universal Medicare Private Limited’s business of marketing and distribution of branded nutraceutical formulations in India. Also, approximately 750 commercial employees will transition to Aventis Pharma Ltd. The transaction has been approved by the Boards of Directors of both companies. It is expected to close in the fourth quarter of 2011, subject to certain conditions precedent.
Universal Medicare, (headquartered in Mumbai, India) manufactures, markets and distributes branded nutraceutical formulations in India through their sales and marketing infrastructure. For the year ended March 31, 2011, Universal Medicare’s turnover of the business to be acquired was approximately Rs. 1100 million.
With this acquisition, Aventis Pharma will advance its sustainable growth strategy in India and facilitate the creation of a consumer healthcare and wellness platform. This move is also synergetic with the growth strategy of Sanofi, a majority stakeholder in Aventis Pharma Limited.
“India is one of our most important markets in the emerging world and this acquisition reinforces our commitment to invest and grow our presence in India through a diversified portfolio that is focused on patients’ needs,” said Antoine Ortoli, Senior Vice President, Intercontinental Region – Global Operations of Sanofi.
“This strategic acquisition will allow Aventis Pharma and Sanofi Group to reach out to large sections of India’s population through a broad offering comprising of pharmaceuticals, vaccines and now nutraceuticals,” said Dr. Shailesh Ayyangar, Managing Director – Aventis Pharma Limited and Vice President – South Asia, Sanofi.
Universal Medicare’s portfolio of over 40 branded formulations represent key categories within the nutraceutical market, that are primarily antioxidants, vitamins and mineral supplements, anti-arthritics, anti-osteoporotics, liver tonics, and other nutrients.
Universal Medicare’s Chairman and Managing Director, Vikram Tannan stated “In today’s rapidly changing healthcare scenario, I believe that Aventis Pharma with its track record of building strong brands is best suited to take on and strengthen what we have built over the years. They will not only add value by giving new life to this business but will also nurture our employees through best in class training and advanced marketing practices in a multinational environment."
Under the proposed transaction, Universal Medicare will manufacture the products that Aventis Pharma will be acquiring on mutually agreed terms.
Source: Aventis Pharma
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