Piramal Enterprises (PEL) a leading player in custom research and manufacturing services (CRAMS) has invested US $ 30.65 million (around Rs. 189 crore) to buy Coldstream Laboratories Inc. in an all-cash deal.
Coldstream is a contract development and manufacturing organization (CDMO) focused on the development and manufacture of sterile injectable products, a statement from PEL said.
The deal was done by PEL’s wholly owned U.S. subsidiary and out of the total consideration, US $ 5.65 million (around Rs. 35 crore) will be towards the purchase of the facility building which is currently leased to Coldstream and the rest would be towards a 100 per cent buyout of the company’s shares.
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Coldstream has developed differentiated expertise to formulate and make high potency and cytotoxic compounds including Antibody Drug Conjugates (ADCs) and operates from a Food & Drug Administration (FDA) approved facility in Kentucky, USA. It employs 91 people and estimated revenues for 2014 are US $ 14 million, the statement said.
In a statement, CEO, Pharma Solutions business, PEL, said, “Coldstream is a very high quality operation and has been able to build significant customer relationships and track record for sterile products. We see this as a great platform for growth in our Pharma Solutions business.”
Mr. Sharma added that the acquisition allowed PEL to move further into the injectable market segment and should have strong synergy with the existing Pharma Solutions business. “Our strong capabilities in sterile product development and ADC product segment will allow us to offer an integrated solution to our customers.”
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PEL is a diversified company with a presence in healthcare, healthcare information management and financial services. It reported consolidated revenues of $ 750 million in 2013-14 with about 70 per cent of revenues coming from outside India.