Wockhardt buys French firm Negma for $265mn

Wockhardt has acquired Negma Laboratories, the fourth largest independent, integrated pharmaceutical group in France with sales of $150 million, in an all-cash deal worth $265 million.

According to a release issued by Wockhardt to the BSE today, the transaction is valued at 1.8 times sales and 9.7 times EBITDA.

"With this acquisition, the company becomes the largest Indian pharmaceutical company in Europe with more than 1,500 employees based in the continent," the release added.

Habil Khorakiwala, chairman, Wockhardt said: "France-based Negma is a unique acquisition for Wockhardt. It is a research-based pharmaceutical company with 172 patents. The acquisition will allow Wockhardt to extend this patented portfolio to other European markets where Wockhardt enjoys a strong presence.

"Further, it will provide us the right vehicle to enter the French generics market valued at $2 billion, leveraging Wockhardt's robust EU portfolio and an impressive pipeline. With this acquisition, Wockhardt will enjoy a pan-European presence covering all the key markets of Europe - Germany, UK, Ireland and now France".

With the Negma acquisition, the European business will now account for more than 60% of Wockhardt's total revenue. The company presently has a portfolio of 130 products in the European market.

Negma is the company's third acquisition in less than 12 months. The company had earlier acquired Pinewood (sales $70 million) and Dumex (sales Rs 60 crore).