Strides Arcolab completes business rearrangement

17 Sep 2008 | 09:34




Strides Arcolab completes business rearrangement


Strides has in the recent past completed a series of divestments and
acquisitions to rearrange its business on 3 specific business segments
- manufacturing and R&D, international front-ended business -
generics and brands and nutraceuticals business.

Further
to the announcement made in November 2007 & March 2008, Strides has
agreed to cede controlling interest in the Latam Operations to Aspen
and will now hold 49% equity in the company for a transition period
until June 30, 2009 when Strides intents to sell the remaining 49% to
Aspen in a pre-arrariged multiple of EBITDA. The transfer of
controlling Interests values the Latam business at US$ 280 million. The
effective sale consideration for the entire share capital of the Latam
operations will amount to 9.32 times the EBITDA up to US$ 11.94 million
plus 11.18 times the EBITDA over US$ 11.94 million.

The company made this announcement after the trading hours on Tuesday, 16 September 2008.