Ranbaxy buys 96.7% Terapia stake for $324mnOur Web Bureau / Mumbai March 29, 2006Ranbaxy Laboratories has acquired 96.7% of Romania-based Terapia from Advent International for $324 million, which is equal to a valuation of 11.6xLTM (last twelve months) EBITDA.According to a release issued by Ranbaxy to the BSE today, on a full-year 2006 EBITDA, the EV/EBITDA valuation is expected to be even lower. "The transaction is funded from the proceeds of Ranbaxy's recent FCCB issue, and deal completion is expected within Q22006," the release added.Terapia is the largest independent generic company in Romania. Established in 1921, it has a strong brand name and a consistent track record of growth and profitability. Its pro-forma 2005 sales were approximately $80 million, and the company has superior EBITDA margins in excess of 35%, the release added.Malvinder Mohan Singh, CEO & managing director of Ranbaxy, said: "Terapia represents exceptional value for our stakeholders. Within the Ranbaxy fold, it unleashes multiple synergies of product development, product flow, low cost manufacturing, proximity and access to high growth markets while being earnings accretive to the group immediately. The transaction is compelling, and furthers us on our path to becoming a top five global generic company."According to a release issued by Ranbaxy to the BSE today, the company gains access to Terapia
