In a strategic move aimed at expanding its presence in the South African market, Cipla has announced its intention to acquire Actor Pharma, a privately owned consumer health and generic medicine company. The acquisition is set to be completed at a cost of ZAR900 million or $48.6 million.
Cipla is conducting this acquisition through its wholly-owned subsidiary in South Africa, which has entered into a binding term sheet with Actor Holdings to purchase 100 percent of the issued ordinary shares of Actor Pharma. This transaction is regarded as a “strategic acquisition” by Cipla, with a focus on leveraging cost synergies within the South African market.
Actor Pharma’s specialization in the consumer-driven market and its promising pipeline of new product launches are expected to provide a significant boost to Cipla’s over-the-counter (OTC) revenue. Umang Vohra, Global MD & CEO of Cipla Limited, expressed enthusiasm for this acquisition, stating that it aligns with their strategy of strengthening their OTC and wellness portfolio. Vohra emphasized the potential to leverage their marketing capabilities, unlock future growth opportunities, and optimize their product pipeline.
The acquisition process is set to move forward swiftly, with an expected signing of the agreement within 14 days. The overall transaction is projected to be finalized within three to four months, contingent upon the negotiation and signing of definitive transaction agreements (which are anticipated to conclude soon) and the receipt of regulatory approval from South Africa’s Competition Commission, as specified by Cipla. This move represents Cipla’s commitment to expanding its market presence and enhancing its product offerings in South Africa, aligning with its broader growth strategy.
| Read More news: Click here |
