Aventis Pharma, unit of French drug maker Sanofi, on Wednesday announced to acquire nutraceutical business of Mumbai headquartered Universal Medicare (maker of popular cod liver oil capsules brand Seacod) - a move that will mark its entry in India's over the counter (OTC) industry.
The company did not reveal the financials of the deal but sources said the deal size is around Rs 500 crore.
"This strategic acquisition will allow Aventis Pharma and Sanofi Group to reach out to large sections of India's population through a broad offering comprising of pharmaceuticals, vaccines and now nutraceuticals," said Shailesh Ayyangar, managing director, Aventis Pharma and vice president, South Asia, Sanofi.
Universal Medicare's turnover of the nutraceuticals business, which comprises of over 40 OTC formulations in antioxidants, vitamins and mineral supplements, anti-arthritics, anti-osteoporotics, liver tonics category, was about Rs 110 crore in 2010-11. Investors gave thumbs up to the deal as shares of Aventis Pharma closed up 5.7% at Rs 2,155 on Bombay Stock Exchange on Wednesday.
The deal, which has been approved by the boards of directors of both companies, is expected to complete in the fourth quarter of 2011. Under the transaction, 750 employees of Universal Medicare will shift to Aventis.