Health and care brands group Ascendis Health, will acquire the Southern African veterinary operations of Cipla India for R375-million.
The purchase price includes a deferred payment of R50-million over 15 months. The acquisition will take effect in April.
The sale follows the decision by Cipla India to divest its Southern African veterinary operations to focus on human healthcare only in South Africa.
Ascendis Health CEO Dr Karsten Wellner said the Cipla animal health businesses provide an excellent strategic fit with the Ascendis Phyto-Vet division, which focuses on animal and plant health products.
“The acquisition will enable Ascendis to expand into the attractive veterinary pharma market, with high-margin products in strong growth segments. The new business will complement our presence in the pharma industry and Phyto-Vet’s biosciences business, while adding therapeutic products to our portfolio which is an area where Ascendis has not had a strong representation in the past,” he said.
Wellner noted that currently only about 10% of Cipla’s veterinary sales are generated through export into Namibia, Botswana, Zambia and Angola.
“This provides an excellent opportunity for synergies through Phyto-Vet’s existing African network. The Cipla products will also support Phyto-Vet’s planned expansion into new African markets and the further internationalisation of the business.”