Strides Arcolab has entered into a definitive agreement for the sale of its specialties subsidiary, Agila Specialties, and simultaneously its overseas specialities subsidiary, Agila Specialties Asia, Singapore, has entered into a definitive agreement for the sale of its subsidiaries to Mylan.
Under the terms of the agreement, Strides and its subsidiary will receive an aggregate sum of $1,600 million in cash on closing and a potential additional consideration of up to $250 million subject to the satisfaction of certain conditions by Strides.
The transaction has been independently approved by the respective Board of Directors of Strides and Mylan. The agreement to sell Agila Specialties Asia, Singapore, has been independently approved by the respective Board of Directors of Agila Specialties Asia and Mylan. Following successful closing of the transaction, Strides proposes to utilise proceeds towards, inter alia, retiring debt, providing a pre-tax return of approximately $700 million to $800 million to shareholders, and costs related to the satisfaction of contingent conditions.
Commenting on the transaction, Arun Kumar, Executive Vice Chairman and Group Chief Executive Officer, Strides Arcolab, said, “The sale of Agila demonstrates our commitment to maximising value to our shareholders. Our investments in the business, together with the operational excellence of our employees, have led to the creation a global, high-quality specialty injectables business with an industry-leading pipeline and best-in-class infrastructure. We believe Agila, its partners, customers and employees across all of its markets will benefit significantly from Mylan’s global reach and strong position in the global generic and specialty pharmaceutical sector. I am excited by the combination of our Agila business with Mylan as it allows Mylan to leverage its operational base to become a leading global injectables company in the coming years and offers great opportunities to the employees who have made Agila what it is today. Mylan’s long-standing commitment to quality, its track record of integrity and reliability, and powerful global platform make Mylan the perfect fit for this business, both culturally and from a commercial perspective.”
VS Iyer, Chief Executive Officer, Agila Specialties, said “This transaction is an endorsement of the world-class capabilities the Agila team has created and serves as a perfect bolt-on strategy for the future of Agila and its employees.”
Heather Bresch, Chief Executive Officer, Mylan, said, “The addition of Agila to Mylan’s existing injectables platform will immediately create a new, powerful global leader in this fast-growing, attractive market segment and accelerate our target of becoming a top-three global player in injectables. Agila’s broad product portfolio and pipeline, which is very complementary to Mylan’s, is the result of best-in-class research and development and an industry-leading track record of securing product approvals. Importantly, Agila will bring Mylan one of the most state-of-the-art, high-quality injectables manufacturing platforms in the industry. We are excited to welcome the Agila employees to Mylan’s growing global team and anticipate a seamless and rapid integration of the Agila business.”
The transaction is subject to customary conditions, including receipt of required regulatory approvals. Jefferies International is acting as sole financial advisor to Strides Arcolab. Herbert Smith Freehills is acting as lead international counsel, supported by DSK Legal, Haynes and Boone, and Pinheiro Neto Advogados.
EP News Bureau – Mumbai
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