| Nicholas Piramal to buy Pfizer's Morpeth, UK facility |
| Our Web Bureau / Mumbai June 15, 2006 |
| Nicholas Piramal India is acquiring the Morpeth, UK manufacturing facility of Pfizer. According to an official release issued by Nicholas Piramal to the BSE today, this will expand the company's global footprint, particularly in the finished API, contained finished dosage, packaging and supply chain areas. Nicholas Piramal's 100% UK subsidiary, NPIL Pharmaceuticals (UK) has entered into an agreement to acquire the Morpeth facility on an asset purchase basis. The transaction includes: a supply agreement till November 2011 totaling potential revenues above $350 million, site fixed assets and property and certain net current assets, the release said. The company anticipates funding the total consideration to be paid and any needed incremental net current assets from its projected pre-acquisition internal accruals of FY2007. The transaction is on a liability and cash free basis. Completion is subject to required regulatory and other approvals, which are expected by June 19, 2006. The company expects significant synergies of its current operations and business pipeline with Morpeth. The Morpeth acquisition will be EPS accretive from FY2007, the release said. With the acquisition of Morpeth, the company has gained strategic entry into the global souring network of Pfizer and will become the biggest supplier (in terms of spend) within Pfizer's global contract manufacturing network, with supplies to over 100 global markets, the release said. "This acquisition again demonstrates NPIL |
