Divestment of portfolio of branded and generic products to Strides entities
21/05/15: Shauneen Beukes
Aspen is pleased to announce that certain of its wholly owned Australian subsidiaries (collectively "Aspen Australia"), have entered into an agreement with Strides (Australia) Pharma Pty Ltd ("Strides Australia"), a company incorporated in Australia, in terms whereof Aspen Australia will divest to Strides Australia, a portfolio of approximately 130 products for a consideration of approximately A$265 million ("the Australian Transaction").
The portfolio of products in the Australian Transaction comprises a generic pharmaceutical business together with certain branded pharmaceutical assets. This portfolio recorded revenue of A$106 million and a direct contribution to profit before tax of A$26 million for the year ended 30 June 2014.
In a separate transaction, Aspen Global Incorporated ("AGI"), a company incorporated in Mauritius, has entered into an agreement with Strides Pharma Global Pte Limited ("Strides Singapore"), a company incorporated in Singapore, in terms whereof AGI will divest to Strides Singapore, a portfolio of six branded prescription products, for a consideration of approximately US$92 million. This portfolio recorded revenue of US$12 million and a direct contribution to profit before tax of US$10 million for the year ended 30 June 2014.
Strides Australia and Strides Singapore are wholly owned subsidiaries of Strides Arcolab Limited ("Strides"), a pharmaceutical company headquartered and publicly listed in India. Strides have a key focus on the development and manufacture of IP-led, niche pharmaceuticals products.
These transactions form part of Aspen's communicated strategic intent to focus attention in areas where most value can be added and to lessen complexity.
The transactions are conditional upon, inter alia, the approval of the Australian Foreign Investments Review Board.
21 May 2015
Investec Bank Limited
ASPEN PHARMACARE HOLDINGS LIMITED
(Incorporated in the Republic of South Africa) ("Aspen Holdings")
Registration number: 1985/0002935/06
Share code: APN
and its subsidiaries (collectively "Aspen" or "the Group")