Dishman buys UK-based contract research firm

Ahmedabad-based Dishman Pharmaceuticals & Chemicals Ltd has acquired the UK-based contract research company, Synprotec, through its wholly-owned UK-based subsidiary, Dishman Europe.

The size of the deal is estimated to be less that POUND 2 million. "The asset base of Synprotec currently stands at around POUND 2 million (about Rs 15 crore). The company has negotiated the deal below this price," said J R Vyas, managing director, Dishman Pharma, on Thursday.

"After the acquisition, Synprotec, which has facilities in Manchester, will be as a debt-free company."

He added that Dishman has financed the deal through internal accruals. He said that the company has paid the full and final amount.

This is Dishman's second overseas acquisition. The company had recently acquired the Holland-based Chem Conserve for manufacturing phosthanium quats.

Synprotec has serviced major pharma MNCs and specialty chemical companies. At the time of acquisition, Synprotec had bagged orders worth around POUND 2 million. "But these orders are likely to go up considerably in the coming months," Vyas said.

Dishman will retain all key technical personnel of the acquired firm. Vyas said that Peter Nightingale, founder-promoter of Synprotec, will now join the global technical board of the Dishman group.

But a portion of the contract research available with Synprotec will be outsourced to Dishman's plant at Bavla in Ahmedabad. "This will provide a greater profitability for the UK unit," Vyas said.