Super Religare Labs to acquire Piramal Diagnostics with 107 labs - Pharmaceuticals India

Super Religare Labs (SRL) Tuesday announced it had successfully completed talks for the acquisition of Piramal Diagnostics. The deal will see Super Religare takeover Piramal Diagnostics’ 107 labs, with the company’s current annual revenues generation pegged at more than Rs 200 crore. The new acquisition investment comes in the wake of Piramal Healthcare’s sell of its other major business, this being the second in recent months.

 

In its announcement, Piramal Healthcare Ltd said it had sold off its subsidiary, Piramal Diagnostics Services Private Ltd to Super Religare Labs (SRL) for an investment pegged at Rs 600 crore.  The agreements for the deal will entail an upfront remittance of Rs 300 crore with the remainder of the deal’s worth to be remitted in three years’ time.

 

Piramal Diagnostics is involved in the provision of pathology and radiology services via a network of 107 labs across the country. The deal will subsequently see Super Religare distinguish itself as it now has the biggest network of pathology and radiology centers in the country. Even so, the deal will as well see Piramal’s continued engagement in the business as it will have representatives in SRL’s Board of Directors and its Executive Committee.

 

Piramal Healthcare sold off another of its major business in May. In the May deal, the company divested its domestic formulations business to Abbott, the New York Stock Exchange listed pharmaceuticals giant for an estimated $2.12 billion, that was remitted upfront and an additional $400 million to be remitted per annum over the coming four years.

 

Due to the sale of its major business to Abbot, Piramal was left with businesses like custom manufacturing, critical care, over the counter customer products, manufacture and the supply of active pharmaceutical ingredients (API), fine chemicals and vitamins. Piramal Group Chairman, Ajay Piramal said that PDSL’s network is made up of doctors with established reputations and committed professionals through whom the business has been successfully built over the gone years.

 

Mr Piramal reiterated that his feelings that the right time for the company to take its business a step forward in development and give it scale and size to meet the needs of a burgeoning Indian customer base. As such, the company would seek quality investments that enable it offer high levels of quality and care, a combination he said stands to shift radically the diagnostics markets services in India and the larger Asian continent

 

14 July 2010.