The deal will be financed by Rs 3,000 million of internal accruals and Rs 3,500 million of borrowings
Eris Lifesciences has acquired 100 per cent stake in Mumbai-based dermatology focussed domestic formulations company Oaknet Healthcare for a total consideration of Rs 6,500 million. The deal will be financed by Rs 3,000 million of internal accruals and Rs 3,500 million of borrowings. The acquisition will be completed by way of a share purchase agreement as a result of which Oaknet will become a wholly-owned subsidiary of Eris.
Eris’ Specialty Franchise will get a significant impetus with this acquisition with Eris now present in 87 per cent of the Rs 55,000 crore chronic market, with a leading presence in the major chronic therapies in the IPM – cardiology, oral diabetes care, insulin, Neuro/CNS and dermatology.
Amit Bakshi, CMD, Eris Lifesciences, said,“As Oaknet becomes part of the Eris Group, it provides us with a robust growth platform in the areas of Dermatoloy and Cosmetology. In line with Strides and Zomelis acquisitions, we are confident that the Oaknet transaction will create long-term value for our shareholders.”
Krishnakumar V, Executive Director and CEO, Eris Lifesciences Ltd., added, “The acquisition of Oaknet brings marquee brands like Cosvate and Cosmelite into the Eris portfolio. We expect to bring to bear multiple value creation levers including in-house manufacturing, new product launches, expansion of field force productivity and enhancement of operational efficiency.