Aurobino subsidiary to acquire Generis Farmaceutica

Generis is the most sold pharmaceutical brand in Portugal, and is the #2 generic group in Portugal.

The total consideration for the acquisition is €135 million. The acquisition includes the manufacturing facility in Amadora, Portugal, which has the capacity to manufacture 1.2 billion tablets/capsules/sachets annually.

This deal consolidates Aurobindo’s footprint in Portugal, which currently consists of Aurovitas, Unipessoal LDA and Aurobindo Pharma (Portugal), Unipessoal Limitada. The consolidated APL group will rank #1 in the Portuguese generic pharma market, and will have the largest generic product portfolio consisting of 271 products.

Management estimates that the net sales for the acquired business will be approximately €72 million in 2017, compared to €64.8 million in 2016. Adjusted EBITDA estimate for 2016 is €12.7 milion which is projected to improve to €15.8 million EBITDA in 2017.

Synergies from Aurobindo’s vertical integration and pipeline breadth, improvement in Amadora plant capacity utilisation by servicing both local and European markets, and advantages from being the #1 generic group in Portugal, are expected to be €2 million in 2018, €5 million in 2019, and expected to improve further thereon.

Aurobindo has been steadily expanding its European footprint since 2006, via acquisitions across several key markets, most notably in 2014 with the acquisition of Actavis’s commercial operations in seven Western European countries. The acquisition of Generis, thus, builds upon an already successful growth strategy.