Date:02/12/2006 URL: http://www.thehindubusinessline.com/2006/12/02/stories/2006120205790100.htm

Ranbaxy acquires South African firm for Rs 315 cr

Our Bureau

Deal slated for completion next year

New Delhi , Dec. 1

Ranbaxy Laboratories Ltd announced on Friday that it has acquired South Africa's fifth-largest generics player Be-Tabs Pharmaceuticals for $70 million (Rs 315 crore). The acquisition, subject to requisite approvals from South African authorities, is slated for completion in the first quarter of 2007.

According to a Ranbaxy statement, the closely held Be-Tabs Pharmaceuticals — South Africa's largest manufacturer of penicillin formulations with a strong OTC portfolio — has annual sales of about $30 million. The acquisition is to be funded from Ranbaxy's FCCB (foreign currency convertible bonds) proceeds, it said.

Commenting on the acquisition, the Ranbaxy CEO and Managing Director, Mr Malvinder Mohan Singh, said, "The acquisition of Be-Tabs results in considerable synergies and further strengthens Ranbaxy's foothold in South Africa... The move will help us to provide effective disease management solutions in support of the (South African) Government's objective to make healthcare affordable to a wider cross-section of the population."

"It is our clear intent to accelerate our growth in the local market," Mr Desmond Brothers, Chief Executive Officer of Ranbaxy's South African operations, said in the statement. South Africa, the largest pharma market in Africa valued at close to $2 billion, is projected to have a high potential for generic growth. Ranbaxy South Africa commenced its commercial operations in 1996.