Companie

Aurobindo to sell US unit to New Mountain Capital for $550 million

Our Bureau Hyderabad | Updated on October 26, 2020 Published on October 26, 2020

Pharma firm to use proceeds to pare debt, for strategic initiatives

Aurobindo Pharma has reached a definitive agreement to sell Natrol LLC, a wholly owned subsidiary of Aurobindo Pharma USA, Inc., to an affiliate of New Mountain Capital to combine with Jarrow Formulas.

The all-cash transaction is valued at $550 million (₹4,048 crore at the current exchange rate). Subject to customary closing conditions and regulatory approvals, the transaction is expected to close by January. Natrol’s annual sales for the 12 months ended March 31, 2020 was approximately $157 million.

“Following the acquisition of the assets of Natrol by Aurobindo Pharma in December 2014, Natrol has been a consistently profitable business, growing on all fronts under Aurobindo’s ownership,” the Hyderabad-based company said in a release issued on Monday.

N Govindarajan, Managing Director, Aurobindo Pharma, said: “Proceeds from Natrol’s divestiture will be used to reduce debt and other new strategic initiatives.”

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Published on October 26, 2020
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