Plethico buys US’s Natrol for $80 m
Plethico pharmaceuticals has acquired US-based health care firm Natrol Inc for $80.7 million, ensuring a toehold in the world’s top drug market, reports Indulal PM.business Updated: Nov 19, 2007 22:51 IST
Plethico pharmaceuticals has acquired US-based health care firm Natrol Inc for $80.7 million, ensuring a toehold in the world’s top drug market.
Natrol is a leading manufacturer of nutritional products in the US and has a presence in 40 countries. The acquisition would help Plethico consolidate its position in the herbal and nutraceutical space, company chairman and managing director Shashikant Patel said.
“This will help us to increase our presence in the Commonwealth States, Africa, South East Asia, Latin America, and GCC countries,” he said.
Plethico is offering $4.40 for all outstanding Natrol shares in a tender offer to start November 27. The tender is being offered by a wholly owned subsidiary of the Indian pharma firm. The tender would remain open for 20 business days from the day of commencement, subject to an extension under certain circumstances. Singhi Advisors (India) and US-based Brocair Partners are Plethico's financial advisors.
Sanjay Pai, Plethico’s chief financial officer, said: “We are trying to consolidate in this nutraceutical sphere and become a big player in the segment.”
The nutraceutical market in the US is worth about $22 billion, he added.
Plethico would fund the deal through the $75 million it raised in convertible bonds and the rest would come from the proceeds from its
IPO, Pai said.