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Aventis Pharma acquires Universal Medicare
Aventis has acquired Universal Medicare, a nutraceutical formulation company. According
to the deal, the products that Aventis Pharma will be acquiring on mutually agreed terms
and the manufacturing rights of the company would be retained by the Universal
Medicare. Mumbai-based Universal Medicare manufactures markets and distributes
branded nutraceutical formulations in India through its sales and marketing infrastructure.
For the year ended 31 March 2011, the company's turnover of branded nutraceutical
formulations was approximately Rs110cr. The latest acquisition, the company will advance
its sustainable growth strategy in India and facilitate the creation of a consumer healthcare
and wellness platform. This move is also synergetic with the growth strategy of Sanofi, a
majority stakeholder in Aventis Pharma. The transaction is expected to close by
4QDec’2011. While the details of the deal are not know, we believe that the earnings
would increase by 7%. Thus after factoring in the possible upsides from the deal, the stock
would trade at 21.6xCY2012E earnings, and hence remain Neutral on the stock.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Aventis Pharma acquires Universal Medicare
Aventis has acquired Universal Medicare, a nutraceutical formulation company. According
to the deal, the products that Aventis Pharma will be acquiring on mutually agreed terms
and the manufacturing rights of the company would be retained by the Universal
Medicare. Mumbai-based Universal Medicare manufactures markets and distributes
branded nutraceutical formulations in India through its sales and marketing infrastructure.
For the year ended 31 March 2011, the company's turnover of branded nutraceutical
formulations was approximately Rs110cr. The latest acquisition, the company will advance
its sustainable growth strategy in India and facilitate the creation of a consumer healthcare
and wellness platform. This move is also synergetic with the growth strategy of Sanofi, a
majority stakeholder in Aventis Pharma. The transaction is expected to close by
4QDec’2011. While the details of the deal are not know, we believe that the earnings
would increase by 7%. Thus after factoring in the possible upsides from the deal, the stock
would trade at 21.6xCY2012E earnings, and hence remain Neutral on the stock.
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