Ranbaxy’s $70M Buy Makes it Fifth Largest Generics Firm in South Africa
Acquisition of Be-Tabs strengthens company’s position in largest African market.!--h2>
Ranbaxy Laboratories snagged the fifth-largest South African generics manufacturer, Be-Tabs Pharmaceuticals, for $70 million. “The acquisition of Be-Tabs’ results in considerable synergies and further strengthens Ranbaxy’s foothold in South Africa,” points out Malvinder Mohan Singh, CEO & managing director, Ranbaxy. “The move will help us to provide effective disease management solutions in support of the government’s objective to make healthcare affordable to a wider cross-section of the population.”
Ranbaxy points out that considering the $2-billion South African market is largest in Africa, is steadily growing, and has high entry barriers, Be-Tabs represents a significant acquisition. Be-Tabs registered sales of approximately $30 million and is one of the most profitable companies in the market, according to Ranbaxy. The company will gain access to Be-Tabs’ OTC portfolio that can be leveraged with wholesalers, pharmacists and consumers. Be-Tabs is also the largest Penicillin manufacturer in South Africa.
This transaction is valued at 2.2 times of sales and 7.7 times of EBITDA multiples. Ranbaxy expects that it will be EPS accretive in year one. The acquisition should be completed in the first quarter of the year 2007.