Mumbai: Oct 16th 2006: Wanbury Limited has acquired Spain-based Cantabria Pharma, in a deal valued at Euros 42 million. The acquisition will serve as an effective entry in the lucrative European market for Wanbury.
Cantabria Pharma sees a target of Euro 33 million in revenues for the first year, in the Ethical Formulation segment of the Spanish market with an EBITDA of Euros 8-10 million. Cantabria has product development worth Euros 6 million in the pipeline for the next year, and is expected to grow at CAGR of 15-20% over a five year period. This is a large acquisition for Wanbury, and there will be a considerable positive impact on the financials of Wanbury, on a consolidated basis.
“The acquisition of Cantabria Pharma will enable us to enter into the European Generic Markets, where we see good returns in the future. Wanbury is already catering to the European Markets through sale of APIs. We are also looking at bringing Cantabria’s products into India,” said Ashok Shinkar, Director Corporate Finance Wanbury Limited.
With this deal, Wanbury shall acquire the Branded Generic Ethical Formulation business of Cantabria, including trademark rights, marketing authorizations and the company’s sales and marketing personnel consolidating a revenue of over Rs.180 cr. The obvious benefits that Wanbury will derive from the acquisition are: