Eugia US Manufacturing LLC, USA, a wholly owned step-down subsidiary of Aurobindo Pharma, has entered into an asset purchase agreement with Empower Clinic Services New Jersey, LLC to dispose of its business assets as a going concern with related assets and liabilities and employees.
A cash of USD 52 million is to be received from the disposal, plus USD 58 million in lease payments made to Eugia US Manufacturing LLC and/or its affiliates, over the 20 years lease term including extensions.
The transaction is expected to close within 90 days from the date of definitive agreement subject to fulfilment of closing conditions referenced in the definitive agreement including financial closure by the buyer.
The move is being undertaken since capacities and operations are being ramped up in other units of the Company and it shall, upon closing, enter into contract manufacturing arrangements with the buyer.
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