Swedish firm Recipharm buys Kemwell businesses for Rs. 1360 cr

Recipharm AB, a Swedish company, active as a pharmaceutical contract development and manufacturing organisation (CDMO), has agreed to acquire Kemwell’s pharmaceutical contract development and manufacturing businesses in India, US and Sweden in a strategic deal worth $ 205 million (about Rs 1360 crore).

Anurag Bagaria, managing director of Kemwell, commented, “I am delighted about the combination of Kemwell’s pharmaceutical business with Recipharm, both of which have many complementary capabilities. I am confident that together we will be even more successful and we look forward to building on our combined strengths.”

Recipharm and Kemwell have signed two separate agreements for this. The first acquisition, comprising US and Swedish operations, is expected to close during the second quarter 2016, after review by the Swedish Competition Authority, while the second, comprising operations in India, is conditional on governmental approvals and expected to close before year end. While the acquisition price for Kemwell’s operations in the US and Sweden amounts to approximately $ 85 million, while Indian operations amounts to $ 120 million.

BS