Wockhardt Life Sciences has completed the sale of its Rs 80 crore parenteral intravenous (IV fluids) business to Baxter India, the arm of the $7.7 billion Baxter International of the US, for a sum of $40 million.
Following the transaction, Baxter gets Wockhardt's customer franchise, a sales team of 165 people with the highest productivity in the industry, a low cost distribution network and two production units with a combined capacity of 100 million bottles per annum.
The IV business of the company will be integrated into Baxter's medication delivery business and manufacturing network. Around 450 members have been transitioned from Wockhardt Life to Baxter as part of the transaction that was brokered by Lazard India on behalf of Baxter.
"Our IV business which was created in less than 10 years, was sold to Baxter, a top player in the IV business worldwide, in the best interest of the people involved and of Wockhardt," Habil Khorakiwala, chairman of Wockhardt, said in a press release issued here on Thursday.
The proceeds will be utilised to retire the debt of Wockhardt Life. Following the sell of the IV fluids business, the company will focus on bio-agro business that is growing at 33 per cent and expected to cross the Rs 100 crore turnover market in calendar year 2002.
Carlos Del Salto, senior vice-president of Baxter World Trade Corporation, said: "India is a strategic market for Baxter and this acquisition is expected to play an important role in developing the Indian critical care market. The Wockhardt team brings value to Baxter India in terms of its expertise and the ability to extend our market reach."
The semi-rigid IV bottles manufactured at the company's two plants - at Waluj in Maharashtra and Alathur in Tamil Nadu - will enable Baxter to offer an entire spectrum of IV products to the market and enable the health-care deliverers to have a choice depending on their needs.
Baxter established operations in India in 1997 by marketing a variety of products including those used to treat patients with kidney disease. Baxter also markets blood collection and storage components, pain management products, in addition to many other products and therapies.
It is a leading supplier of continuous ambulatory peritoneal dialysis therapy for people with end-stage renal disease in the country and is setting up a sterile fluid manufacturing facility at Manesar, near Delhi. In India, Baxter employs around 100 people in three facilities.
