Genepharm into its Strides

By Dylan Bushell-Embling
Friday, 13 June, 2008

Shareholders in Australian generic medicines company Genepharm (ASX: GAA) will vote next week on a $61 million plan to acquire the Australian and Asian operating arms of Strides Arcolab, an Indian-based manufacturer of gelatine capsules for pharmaceutical dosage.

The acquisitions are expected to generate up to $32.5 million in sales in 2006/2007, with an EBITDA of around $7.4 million.

In exchange for the trade of Strides regional businesses, Genepharm will give Strides a stake of up to 40 per cent of the company. This will bring Strides' shareholding in Genepharm to up to 55 per cent.

Genepharm said ownership of the businesses would allow it instant access to markets throughout southeast Asia.

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