This is a strategic acquisition for Cipla South Africa to unlock future growth opportunities and leverage cost synergies in the South African market
Cipla South Africa, a 100 per cent owned subsidiary of Cipla signed a binding term sheet with Actor Holdings (Pty) to acquire 100 per cent of the issued ordinary shares of Actor Pharma. This development underpins Cipla’s commitment and investment in its over-the-counter (OTC) business and supports its journey to be a leading healthcare player in South Africa. This is a strategic acquisition for Cipla South Africa to unlock future growth opportunities and leverage cost synergies in the South African market.
Actor was founded in 2009 and has quickly grown to become the fifth largest, privately owned, OTC player in the South African private market. Actor specialises in OTC and generic medicine, where they have established strong consumer brands, and identified niche prescription markets in categories of Women’s health, Nasal, Cough & Cold and Baby & Child. In addition, Actor has an exciting and innovative pipeline and in its last financial year (FY23) delivered revenue of R234 million, on the back of strong double-digit growth.
Umang Vohra, Global MD and CEO, Cipla said, “This is in line with our strategy of strengthening our OTC and wellness portfolio. We believe this is an excellent opportunity to leverage our existing marketing capabilities, unlock future growth opportunities and optimise the performance of our pipeline”.
Paul Miller, CEO, Cipla South Africa said, “This is a unique opportunity that helps to build Cipla’s OTC portfolio, providing the business with a more balanced revenue contribution between the prescription and over-the-counter business and continue to provide additional quality medicines for consumers”.
The transaction is expected to close in the next three to four months, subject to the negotiation and signing of the definitive transaction agreements (which are expected to be concluded imminently) as well as receiving regulatory approval from South Africa’s Competition Commission.
