Advanced Enzyme Technologies buys 70% stake in JC Biotech for Rs50 crore
The acquisition will significantly boost market share of Advanced Enzyme Tech in the enzymes space and enable it to enter the biopharmaceutical molecules space
Mumbai: Advanced Enzyme Technologies Ltd, India’s leading enzyme maker, has entered into definitive agreements to acquire a 70% stake in Hyderabad-based JC Biotech Pvt. Ltd for Rs50 crore.
The acquisition will significantly boost market share of Advanced Enzyme Tech in the enzymes space and enable it to enter the biopharmaceutical molecules space, the company said in a statement.
JC Biotech makes API serratiopeptidase, an anti-inflammatory enzyme, and has a research pipeline of two biopharmaceutical molecules. It also has a fairly advanced technology for the manufacture of algal DHA, an omega-3 fatty acid that finds application in human nutrition.
Advanced Enzyme Tech’s share in the Indian enzymes market will rise to about 32-33% after the acquisition from around 25% currently, managing director C.L. Rathi said, adding that the company will have an 80% share in the API serratiopeptidase market.
The acquisition is likely to add Rs10 crore to the sales of Advanced Enzyme this fiscal and on an annual basis, it may add Rs50-60 crore to revenue and about Rs20 crore to earnings before interest, tax, depreciation and amortization (EBITDA), a company official, who did not wish to be named, said.
The company will finance the acquisition largely through internal accruals and expects to close the transaction by the end of December.
JC Biotech has a production facility in Andhra Pradesh. It earned revenue of Rs39 crore and a net profit of Rs2.5 crore in the ended 31 March, 2016.
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