Strides Arcolab sells Agila Specialities to Mylan for $1600

BANGALORE: Pharmaceutical company Strides Arcolab will sell its specialities division, Agila Specialities to Mylan for $1600 million in cash and a potential additional consideration of up to$250 million . The deal includes sale of Agila Specialities Asia, based out of Singapore as well but does not include Agila Biotech division.

Bangalore-based company said in a statement that, 'Strides proposes to utilise proceeds towards, inter alia, retiring debt, providing a pre-tax return of approximately $700 million $800 million to shareholders, and costs related to the satisfaction of contingent conditions'.

Agila Specialities is in the injectables business and US-based Mylan is a pharmaceutical firm whoseportfolio includes more than 1100 generic pharmaceuticals and branded medications.

The stocks of Strides Arcolab closed at Rs 917.80 down by 6.7% on BSE on Thursday.