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Beximco buys stake in Bangladesh-based Nuvista for up to £18.3m
AIM-listed Beximco Pharmaceuticals has bought a majority stake in Bangladesh-based Nuvista Pharma, which specialises in hormones and steroid drugs, for up to £18.2m.
Beximco has entered into share purchase agreements with six shareholders with an aggregate shareholding of 85.2% in Nuvista.
The final consideration will paid in cash on completion of the acquisition, which is expected to occur on or before 28 February.
Nuvista was a subsidiary of Netherlands-based Organon International. It was sold to the current Bangladeshi management in 2006 and has been operating in Bangladesh since 1964, with a local manufacturing facility at Tongi, Dhaka. The business has a long-term manufacturing and marketing collaboration with Merck Sharp & Dohme.
In the year ended 30 June 2017, it generated revenue of 1.71bn Bangladeshi taka, pre-tax profit of 118m and had net assets 0.548bn.
Beximco's managing director, Nazmul Hassan, said: "The acquisition of a majority stake in Nuvista is an important milestone for Beximco Pharma, marking the first acquisition in the company's history. It further strengthens our strong market position with Nuvista's unique portfolio complementing our existing product range.
"The acquisition will serve as a strong foundation for sustainable future growth, as well as enhancing near-term revenue growth for the company."
At 1230 GMT, the shares were up 1.7% to 59.50p.