The Mumbai-based pharmaceutical major Cipla Ltd will sell its animal health business in South Africa and Sub-Saharan Africa to Ascendis Health Ltd for Rand 375 million (about Rs 192 crores). For this, Cipla’s wholly-owned subsidiary Inyanga Trading 386 Proprietary Ltd has entered into agreements with the group companies of Ascendis Health Ltd.
“Under the agreements, Cipla will divest its 100 percent stake in Cipla Agrimed Proprietary Ltd, South Africa, and Cipla Vet Proprietary Ltd, South Africa. The total consideration of transaction would be Rand 375 million with potential revision linked to FY2017 performance along with customary adjustment (within the price band of Rand 250 million and Rand 500 million) in relation working capital and net debt/cash adjustments,” said Cipla in a press statement.
The deal is subject to customary closing conditions including approval from competition commission of South Africa and is expected to close in the next 3 months.
Commenting on the development Paul Miller, CEO, Cipla South Africa, said, “Cipla has taken the strategic decision to divest and sell its veterinary division. In line with this new strategy, the company will increase its focus and efforts to advancing health care for all South Africans. By doing this, Cipla will have a more intensive approach to grow our portfolio of quality and affordable products, with an aim to provide an even broader range of pharmaceutical solutions in more therapeutic areas in the South African healthcare sector.”
Ascendis Health Limited is a South Africa based health and care brands company operating in human, plant and animal health. “We have full confidence in Ascendis Health’s ability to take both veterinary units to new heights,” added Miller.
Cipla Agrimed operates in the farm animals segment, with sales mainly attributable to agricultural co-operatives and bulk farm purchasing organisations. Cipla Agrimed has a leading position in antimicrobials and endectocides in South Africa.
Cipla Vet, which operates in the companion animal segment with sales primarily to wholesalers, has a strong presence in the South African market, with leading positions in proton pump inhibitors, non-steroidal anti-inflammatory drugs (NSAIDs) and supplements.
Cipla’s animal health division is one of India’s largest veterinary pharmaceutical exporters with a presence in over 100 countries. With a wide portfolio of products, Cipla animal health division specialises in equine and companion care with categories extending to livestock, poultry, swine and aqua products. Its product range covers all the key therapeutic segments like anti-infectives, anti-inflammatories, anti-thyroids, immunosuppressants, parasiticides, nutraceuticals and feed additives.
