Bafna Pharmaceuticals Limited (“Bafna”) announced that it has entered into a definitive agreement for the sale of majority stake in its India Branded Generics Business to Strides Arcolab Limited (“Strides”).
India Branded Generics Business of Bafna is engaged in sales and marketing of branded pharmaceuticals products in niche therapeutic segments of Haematinic, Women healthcare, Pediatric care in India and includes the flagship brand ‘Raricap’ and 7 other brands. The Business has presence in 17 states in India with a field force of about 400 people and had revenue of INR 246 million for the financial year ended March 31, 2014.
Pursuant to the transaction, Bafna will transfer entire India Branded Generics Business as a going concern on a slump sale basis to Strides and will receive a cash consideration of INR 481 million and 26% equity in a SPV, where Strides will hold 74%. Under the proposed transaction, Bafna will continue to manufacture and supply the products from its existing manufacturing facilities for a period of five years.
KPMG Corporate Finance acted as an exclusive financial advisor and Desai & Diwanji acted as legal advisor to Bafna Pharmaceuticals Limited for this transaction.
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