Cipla to acquire South Africa-based Actor Pharma
The acquisition to unlock future growth opportunities and leverage cost synergies in the South African market, the drug major said
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New Delhi: Drug major Cipla on Monday said its unit has inked a pact to acquire South Africa-based Actor Pharma.
Cipla South Africa, a wholly-owned subsidiary of the Mumbai-based drug major, has inked a binding term sheet with Actor Holdings (Pty) Ltd to acquire 100 per cent of the issued ordinary shares of Actor Pharma, the drug major said in a regulatory filing. This development underpins Cipla's commitment and investment in its over-the-counter (OTC) business and supports its journey to be a leading healthcare player in South Africa, he added.
This is a strategic acquisition for Cipla South Africa to unlock future growth opportunities and leverage cost synergies in the South African market, the drug major said. The company, however, did not share the financial details of the deal.
Actor was founded in 2009 and has quickly grown to become the fifth largest privately owned OTC player in the South African market. Actor specialises in OTC and generic medicine, where they have established strong consumer brands and identified niche prescription markets in categories of women's health, nasal, cough and cold and baby and child.
"This is in line with our strategy of strengthening our OTC and wellness portfolio. We believe this is an excellent opportunity to leverage our existing marketing capabilities, unlock future growth opportunities and optimise the performance of our pipeline," Cipla Ltd Global MD and CEO Umang Vohra said.
Paul Miller, CEO, Cipla South Africa said, “This is a unique opportunity that helps to build Cipla's OTC portfolio, providing the business with a more balanced revenue contribution between the prescription and over-the-counter business and continue to provide additional quality medicines for consumers”.
The transaction is expected to close in the next three to four months, subject to the negotiation and signing of the definitive transaction agreements as well as receiving regulatory approval from South Africa's Competition Commission, Cipla said.
