Drugmaker Cipla Ltd’s South African arm has agreed to acquire pharmaceuticals company Anmarate Pty Ltd for ZAR 26.25 million ($1.8 million) in cash.
The amount could increase to as much as ZAR30 million subject to post-closing adjustment of working capital, Cipla said in a stock-exchange filing. The deal will close by April 14, it added.
The Indian company is making the acquisition through unit Cipla Medpro South Africa Pty Ltd. The acquisition will strengthen the firm’s market position in South Africa, the company said.
This is Cipla’s second deal in South Africa within a month; it had sold its animal health business in the African nation last month to focus on core areas.
Cipla had acquired Medro, its South African distribution partner, for $512 million to establish its presence in the region four years ago.
Anmarate was incorporated in 1996. It makes and distributes pharmaceuticals products in South Africa. The firm’s revenue was ZAR2.5 million for the financial year that ended on 29 February 2016, down from ZAR2.8 million and ZAR3.2 million in the previous two years.
Cipla has been streamlining its businesses globally, acquiring products and businesses in some territories while also shedding some businesses to intensify focus on core areas.
The firm said last month that its sale of the animal health business was part of efforts to grow its product portfolio and provide an even broader range of pharmaceutical solutions in more therapeutic areas in South Africa.
Last year, Cipla made two large acquisitions in the US for over $550 million. But earlier this year, it divested its interests in US-based Chase pharmaceuticals to Allergan.
Like this report? Sign up for our daily newsletter to get our top reports.