Piramal Enterprises Limited (PEL, NSE: PEL, BSE: 500302)
announced today that its wholly owned subsidiary in the US has
entered into an agreement to acquire 100% stake in Ash Stevens
Inc., a US based Contract Development and Manufacturing
Organization (CDMO), in an all cash deal for a consideration of USD
42.95 million plus an earn-out consideration capped at $10 million.
This potential transaction is expected to be completed by the end
of August.
Located in Riverview, Michigan, Ash Stevens has over 50 years of
experience in contract manufacturing, and serves several biotech,
mid-size pharma, and large pharmaceutical clients worldwide.
With over 60,000 sq. ft. of facilities, eight chemical drug
development and production laboratories, and six full-scale
production areas, Ash Stevens has built a stellar reputation, led
by science, driven by operational excellence, and one that
emphasizes quality as a culture. As one of the leaders in HPAPI
manufacture, Ash Stevens has an impeccable safety record of working
with high potency anti-cancer agents and other highly potent
therapeutics. The state-of-the-art manufacturing facility in
Michigan features all necessary engineering and containment
controls for the safe handling and cGMP manufacture of small and
large-scale HPAPIs, with Occupational Exposure Limits (OELs) ≤
0.1µg/m3. The facility has approvals from US, EU, Australia, Japan,
Korea, Mexico regulatory agencies.
“The acquisition of Ash Stevens fits well with our strategy to
build an asset platform that offers value to our partners and
collaborators. Currently, around 25% of the molecules in clinical
development are potent. Our clients are looking for reliable
partners that can assist them in advancing these programs forward,”
said Vivek Sharma, CEO of Piramal Pharma Solutions. He
further adds, “North America is a key market that we can now
service with our three local facilities - the Coldstream Labs in
Kentucky for fill finish needs, the Torcan facility in Toronto for
complex high value APIs and now, Ash Stevens in Michigan for
HPAPIs. Having facilities with a differentiated platform and
geographical proximity to clients are keys towards building
strategic partnerships. We expect this acquisition to also be
synergistic with our Antibody Drug Conjugates (ADCs) and injectable
business. We can now fulfill client requirements for a single
source of supply for both high potent APIs and drug products.”
“With its rich history of scientific excellence, a track record
of 12 product launches, Ash Stevens is well poised to become the
partner of choice for clients looking to advance programs from
early development through launch. In addition to the business
benefits that the combined entity will bring to our clients, I am
also pleased that the firms share common core values: both were
founded by successful entrepreneurs, value integrity, and are
committed to a customer-first approach,” said Dr. Mark Cassidy,
President of the API Business at Piramal Pharma Solutions. “I
am pleased to welcome the Ash Stevens team into the Piramal group.
We expect them to be an integral part of our future growth
plans.”
Added Dr. Stephen Munk, CEO of Ash Stevens, “We look
forward to working with the Piramal leadership and management team,
to develop API solutions that benefit customers and improve the
lives of patients. The commitment that Piramal has shown towards
growing its healthcare businesses, coupled with the complementary
capabilities that our two firms have, makes this an exciting time
for Ash Stevens and our employees. We have already identified areas
where we can create significant value together, and will be moving
forward rapidly to achieve those objectives.”
The transaction is not subject to any regulatory approvals. No
related party of PEL has any interest in Ash Stevens.
Wells Fargo Securities, LLC served as exclusive financial
advisor to Ash Stevens, with legal counsel provided by Morrison
& Foerster LLP.
For further information on the financials, please visit our
website: www.piramal.com.
About the Piramal Group
The Piramal Group, led by Ajay Piramal, is one of India’s
foremost business conglomerates with a global footprint. With
operations in 30 countries and brand presence in over 100
countries, the Group’s turnover is around $1.3 billion in FY2016.
The Group’s diversified portfolio includes presence in industries
like healthcare, financial services, healthcare information
management, glass packaging and real estate.
Driven by the core values of knowledge, action and care, the
Group steadfastly pursues inclusive growth, while adhering to
ethical and value driven practices. Piramal Foundation, the
philanthropic arm, has initiatives running across healthcare,
water, education and women empowerment in 19 states of India.
About Piramal Enterprises Limited
Piramal Enterprises Limited (PEL) is one of India’s large
diversified companies, with a presence in Healthcare, Healthcare
Information Management and Financial Services. PEL’s consolidated
revenues were around $ 1 billion in FY2016, with 61% of revenues
from outside India.
In healthcare, PEL is one of the leading players globally in
CRAMS (custom research and manufacturing services) as well as in
the critical care segment of inhalation and injectable
anaesthetics. It also has a strong presence in the OTC segment in
India.
PEL’s healthcare information management business, Decision
Resources Group, is amongst the top 20 US market research
organizations which provide information services to the healthcare
industry.
In financial services, PEL, through its Piramal Fund Management
Division, provides comprehensive financing solutions to real estate
companies. The Structured Investment Group (“SIG”) provides long
term patient mezzanine growth capital to capital intensive
businesses which are an integral part of India’s growth story. The
total funds under management under these businesses are $ 3.3
billion. The Company also has strategic alliances with top global
pension funds like CPPIB Credit Investment Inc. and APG Asset
Management. PEL also has long term equity investments worth over $
700 million in Shriram Group, a leading financial conglomerate in
India.
PEL is listed on the BSE Ltd. and the National Stock Exchange of
India Ltd.
For Investors, please contact:Hitesh Dhaddha / Bhavna
SinyalInvestor Relations, Piramal Enterprises LimitedContact: +91
22 3046 6444 / +91 22 3046 6570investor.relations@piramal.com
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riddhi.goradia@piramal.com /
paroma.bhattacharya@piramal.comorPublic Relations
Consultant:Sumati Chaudhary / Kritika
BhardwajSumati.chaudhary@mslgroup.com /
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