Recipharm AB: Recipharm Completes Acquisition of a Majority Stake in Indian CMO Nitin Life Sciences

Recipharm has acquired 74% of the shares for a purchase consideration of INR 6,713 million (SEK 824 million)[1] on a cash and debt free basis.

Thomas Eldered, CEO of Recipharm said "I am delighted that we have now completed this transaction. The combination of Nitin and Recipharm represents an important step in the development of both companies and I am pleased that both Dr Chetan Sobti and Nitin Sobti will be continuing in their current positions".

Mr. M.M Sobti, founder of Nitin Lifesciences Ltd., commented "This partnership represents a real opportunity to take Nitin Lifesciences to a new level. The combination allows both organisations to access a wider customer base and to gain important learning from each other. The Sobti family is very pleased to be entering into this new strategic partnership which will be hugely beneficial for both companies".

Highlights

•The combined entity will have enhanced scale, reach and profitability. Nitin Lifesciences had 2015 net sales of approximately INR 2 970 million (SEK 391 million) [2], corresponding to 12% of Recipharm's 2015 total net sales. The EBITDA margin 2015 was approximately 24%.

•Significantly bolsters presence in high growth developing territories and the deal firmly establishes Recipharm's emerging market strategy. Provides excellent exposure and direct entry into the rapidly expanding Indian market.

•Recipharm's global position in sterile injectables including lyophilization will be further strengthened.

•The implied value for 100% of Nitin equates to INR 9,071 million (SEK 1,114 million)1and represents approximately 11.7 times 2015 EBITDA of INR 721 million (SEK 95 million)[2],[3].

•Accretive to organic growth and EPS.

Corkrean joins from Ecolab Inc., where he has built a successful 17-year track record of leadership in all areas of financial management and controls. Most recently, he was the senior vice president of Finance for their Global Energy Services sector. During his career at Ecolab, he served as the company's senior vice president and corporate controller, vice president and corporate treasurer, and other significant financial and commercial roles. He also was instrumental in the integration of both the Nalco and Champion acquisitions.