Sequent Scientific buys Lyka's animal business

Alivira Animal Health Limited, a subsidiary of Sequent Scientific, on August 28, 2015 signed an agreement to acquire the animal health business of Lyka Exports, a subsidiary of Lyka Labs Litd, on a 'going concern' basis. The proposed acquisition of Lyka’s animal health business includes all IPRs, sales/marketing/distribution network with related employees, contracts, assets and liabilities.
 
Manish Gupta, managing director, Sequent Scientific, said, “This acquisition augurs well for achieving Alivira's strategic objective of emerging a power house in the global animal healthcare space. The business being acquired will strengthen our portfolio in cattle and dairy segment and will complement our existing India formulations business."
   
In FY15, Lyka’s animal health business registered a top line of close to Rs 23.50 crore with EBITDA margins in the range of 12%. The business is growing by over 30% during the ongoing financial year (FY16).
 
Commenting on the development, N I Gandhi, chairman, Lyka, said, “The transaction, while strengthening our financials, also allows us to focus on creating value in the core pharma business. The proceeds will be predominately utilised to pare down debt. With Sequent's focus and intent to develop a strong global animal health business in Alivira, the transaction offers great opportunities to the employees who are moving to the Sequent family.”