India's major Pharma and healthcare company, Piramal Healthcare Tuesday announced acquisition of Minrad International, an US-based generic inhalation anesthetics provider, for a total consideration of $40 million.
Piramal Group Chairman Ajay Piramal told newspersons here that the offer to Minrad was in consistent with the commitment of Piramal to build a serious global presence in critical care. He said the strategic combination would give Piramal access to key intellectual property for the manufacture of inhalation anesthetics, including process based intellectual property for both servoflurane and desflurane and would provide Piramal an immediate entry into the US market for selvoflurane, the largest selling inhalation anesthetic in that country.
He said the two companies have signed a definitive merger agreement under which Minrad will merge with a newly incorporated wholly owned subsidiary of Piramal.
If the merger is completed shareholders of Minrad would receive $0.12 per share in cash.
In connection with the merger agreement, Piramal has also agreed to acquire Minrad's 89 per cent senior secured convertible notes from the note holders.
The total consideration for the merger and acquisition of the notes, in cash plus the assumption of debt would be approximately $40 million.
The transaction was conditional on approval by Minrad's shareholders and other customary closing conditions. It was not subject to any financing contingency and was expected to close in the first quarter of next fiscal.
Upon merger the combined Company would have marketing and sales presence in 108 countries. The Board of the two companies had approved the move.
Concurrently with the signing of the merger agreement, Piramal provided Minrad with a senior secured loan of $12 million to provide it with capital for operations during the period preceding the closing of the merger.
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