Strides to buy Grandix for $24 million

Strides Arcolab, a Bangalore-based pharmaceuticals formulation company, has signed a definitive agreement to buy Grandix Pharmaceuticals and its subsidiary, Grandix Laboratories. The acquisition would be on a cash- and debt-free basis, valuing Grandix at Rs 100 crore (about $24 million), Strides informed the Bombay Stock Exchange (BSE).

Grandix is a branded pharmaceuticals company. In 2006, the company posted sales of Rs 48.50 crore and EBITDA (earning before interest, tax, depreciation and amortisation) of Rs 10.89 crore. The sales in 2007 are expected to grow at over 30 per cent.

According to Arun Kumar, vice-chairman and managing director, Strides Arcolab, the acquisition will help in expanding its national presence by leveraging the existing Grandix products with the strong Strides research and development (R&D) pipeline.

The deal is accretive to Strides' earnings per share (EPS). The company plans to increase the strength of its medical representatives to 400 by the end of July 2007, Kumar added.