Wockhardt acquires Pinewood in Ireland for $150 mn

Wockhardt Ltd on October 03, 2006, has announced the acquisition of Pinewood Laboratories Ltd, the largest and fastest growing branded generic pharmaceutical company in Ireland. The all-cash deal was worth $ 150 million on an enterprise value basis. Pinewood reported sales of over $ 70 million for the year ended June 2006.

"This acquisition gives us a larger footprint in Europe spread over UK, Ireland and Germany," the Company’s Chairman Habil Khorakiwala said. "European business will now exceed $200 million, accounting for almost half of Wockhardt’s total sales."

The acquisition gives the Company an entry and leadership in the last genericising market of Ireland. As almost half of Pinewood’s sales come from the UK, the acquisition will reinforce the Company's position in the UK where it is already the largest generic company from India and the second largest player in hospital sales.

"The acquisition offers us enormous opportunities to unlock value of our enlarged customer base in UK and Ireland by offering them a wider range of products," Mr. Khorakiwala said.

The acquisition is a strategic fit for Wockhardt UK as Pinewood’s liquids and creams business complements Wockhardt UK's strengths in injectable and solid dosages.

Wockhardt UK is amongst the top 10 generic companies and is the market leader in several of its injectable and solid products. in the UK Wockhardt UK can now leverage Pinewood’s marketing and distribution system and its customer base in Ireland for its vast range of hospital products.

Pinewood is the Company's fourth European acquisition, after Wallis, CP Pharmaceuticals (both in UK) and Esparma in Germany. UK and Germany are Europe’s leading generic markets.

Source : Equity Bulls

Keywords