Drug firm SeQuent Scientific today said its subsidiary Alivira Animal Health has inked a pact to acquire majority stake in Spain's Karizoo Group for an undisclosed amount.
Alivira Animal Health Ltd has signed a definitive agreement to acquire 60 per cent stake in Karizoo Group, one of the leading animal health groups in Spain and European markets, SeQuent Scientific said in a regulatory filing.
The acquisition will be made through Alivira Ireland, a wholly-owned subsidiary of the company, it added.
The company would acquire the stake in the family held Vila Vina Particpacions (VVP) which owns Karizoo Spain, Phytosolutions Spain, Covivet Spain and Karizoo Mexico, it said.
The existing promoters will continue to hold the balance 40 per cent stake, it added.
"We are happy to announce this transaction which bolsters our European presence making it the largest market for Alivira," Alivira Managing Director Manish Gupta said.
Karizoo brings into Alivira an EU approved manufacturing base and strong R&D capabilities, which the company intends to leverage for its global operations, he added.
"The Mexico operations of Karizoo along with our recently announced acquisition in Brazil provides us a strong foot-hold in the Latin American market. We will now have manufacturing operations in India, Turkey, Europe and in Brazil. All this augurs well with our strategy to become the first truly global animal health business from India," Gupta said.
VVP CEO Ramon Vila said: "The acquisition of 60 per cent stake in Karizoo Group by Alivira is a very important step for the globalisation of our business which we built over 20 years."
The integrated business model of Alivira will enhance Karizoo's competitiveness, leveraging its products in wider markets and technical capabilities for faster new product development, he added.
The acquisition makes Alivira a significant player in the Global Animal health space with annualised revenues in excess of USD 120 million.
Alivira will now account for over two-third of SeQuent revenues with formulations business accounting for over 75 per cent of Alivira's business.
Besides, Karizoo will strengthen Alivira's existing European operations in Belgium, Sweden and Netherlands, making Europe the largest region for Alivira's operations with footprints in 15 European markets.
Europe is the world's second largest animal health market estimated at USD 9.6 billion in 2015. The market is expected to touch USD 12.2 billion by 2020.
The transaction is subject to customary closing conditions and is expected to close by July 2016.
Sequent shares were trading at Rs 142.50 apiece on the BSE, up 1.14 per cent from previous close.
