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Under the terms of the agreement, Strides and its subsidiary will receive an aggregate sum of $1.6 billion in cash on closing and a potential additional consideration of up to $250 million subject to the satisfaction of certain conditions by Strides. As announced simultaneously, the division recorded sales of $255 million and EBITDA of $86 million for the historical year ended 31 December, 2012.
Following successful closing of the transaction, Strides proposes to utilise proceeds towards, inter alia, retiring debt, providing a pre-tax return of approximately $700 million to $800 million to shareholders, and costs related to the satisfaction of contingent conditions.
Strides has been in negotiations with many global including Pfizer to sell this division.
Headquartered in Bangalore, India, Agila is a global speciality injectables business focused on key domains including oncolytics, penems, penicillin, cephalosporins and ophthalmics in India and overseas. Agila operates from nine global manufacturing facilities, including one of the largest sterile capacities in India and amongst the largest lyophilisation capacities in the world.
Headquartered in Pittsburgh, Pennsylvania, USA, Mylan is a global pharmaceutical company with a growing portfolio of more than 1,100 generic pharmaceuticals and several brand medications. In addition, it offers a wide range of antiretroviral therapies and operates as one of the largest active pharmaceutical ingredient manufacturers. The company currently markets products in approximately 140 countries and territories and employs a workforce of more than 20,000 people.
Strides will continue to operate and develop its pharma business and front-end businesses in India and Africa. Strides will also focus on developing a fully integrated Biotech business, which will be fully funded post this transaction.
The transaction is subject to customary conditions, including receipt of required regulatory approvals.
Jefferies International Limited is acting as sole financial advisor to Strides Arcolab. Herbert Smith Freehills LLP is acting as lead international counsel, supported by DSK Legal, Haynes and Boone, LLP, and Pinheiro Neto Advogados.
