Wanbury buys Cantabria of Spain for euro 50 mn

Wanbury Limited, one of the fast growing pharma companies in India, has acquired the Spanish company ""Cantabria Pharma S L for a total consideration of approximately euro 50 million (about Rs 300 crore).

Cantabria Pharma, a branded generic company in Spain, is based at Madrid. The valuation of the Spanish company is linked to achievement of milestones negotiated with the seller, the company said in a release the Bombay Stock Exchange.

The investment for the foreign acquisition of Wanbury is to be done through its wholly owned subsidiary in Netherlands ""Wanbury Holdings BV.

Acquisition is funded by a combination of internal accruals and term loans. Wanbury is likely to raise around ¤ 34 million through borrowings.

Post acquisition, Cantabria Pharma sees a target of ¤ 33 million in revenues for the first year in the ethical formulation segment of the Spanish market. Cantabria has product development worth ¤ 6 million in the pipeline for the next year, and is expected to grow at 15 to 20 per cent over a five year period.

Ashok Shinkar, director, corporate finance, Wanbury, said this is a large acquisition for Wanbury, and there will be a considerable positive impact on the financials of Wanbury, on a consolidated basis.

"The acquisition of Cantabria Pharma will enable us to enter into the European Generic Markets, where we see good returns in the future. Wanbury is already catering to the European Markets through sale of APIs. We are also looking at bringing Cantabria's products into India,"he added.

With this deal, Wanbury shall acquire the branded generic ethical formulation business of Cantabria.