Vivimed acquires Uquifa for $ 55 million

NEW DELHI: Hyderabad-based Vivimed Labs has acquired Uquifa, manufacturer of active pharma ingredients ( APIs) and intermediates with operations in Spain and Mexico, for a consideration of $ 55 million.

"In a move to bring in strategic growth into its product mix and expand the footprint in Europe and the Americas, the company has taken a measured stride with the acquisition of Uquifa Spain and Uquifa Mexico," Vivimed said in a release.

The investment consideration of $ 55 million is paid by equity infusion of $ 20 million, debt financing of $ 25 million and the balance of $ 10 million by way of deferred payment, it added.

Uquifa will become the active pharmaceutical ingredient (API) division of the Vivimed group. The company said the acquisition would strengthen the company's current position in pharma APIs and intermediates while significantly improving the cost competitiveness of Uquifa.

"Complementing each other's needs and growth plans the acquisition envisages being a healthy, two-way opportunity pipeline for Vivimed," the company said in a filing to the BSE.

Commenting on the Uquifa acquisition Vivimed Labs MD Santosh Varalwar said, "Multi-geographical locations spell stability and cement long term relationships with customers and channel partners. With Uquifa, Vivimed will have a footprint into LATAM and deeper into Europe."

According to the company, the acquisition of Uquifa will add to its multi-geographical locations and knowledge base

"This will fundamentally mean greater comfort levels for customers and channel partners," the company said.

Post-acquisition, Varalwar will be the president of Uquifa, while Mark I Robbins will remain as CEO. Varalwar will also join the board of Uquifa.

Uquifa sells in over 70 countries and has over 150 active DMFs filed and 20 COS approved. The company has a net assets of $ 65 million and gross assets of $ 100 million as of this June.

Shares of Vivimed Labs today closed at Rs 240.95 on the BSE, down 2.21 per cent from its previous close.