Pharmaceutical major Ranbaxy Laboratories extends roots in South Africa with finalisation of Be-Tabs acquisition
The deal is valued at R500 million (USD 70 Million) and will make Ranbaxy the fifth largest generic pharmaceutical company in South Africa.
Tweet -- In line with Ranbaxy Laboratories aggressive international expansion strategy, the approval from South Africa's Competition Commission has solidified the acquisition of Be-Tabs Pharmaceuticals (Pty) Limited ("Be-Tabs") by Ranbaxy Laboratories. (RNBV)
The deal is valued at R500 million (USD 70 Million) and will make Ranbaxy the fifth largest generic pharmaceutical company in South Africa.
As part of this acquisition, Ranbaxy has concluded a Black Empowerment transaction with a Community Investment Holding(CIH) group company.
Peter Burema, President of Ranbaxy's global pharmaceutical division, who signed the deal on Friday 4th May said," the acquisition of Be-Tabs will ensure that Ranbaxy develops deeper roots in SA and with a strong local flavour."
A key element of the Be-Tabs deal is that it gives Ranbaxy local manufacturing capability - making the company one of the few generics pharmaceutical companies to invest in and develop local manufacturing functionality.
Desmond Brothers, CEO of Ranbaxy South Africa, says: "the company's decision to manufacture locally will not only help to provide quality medicine at an affordable price to the Southern African market, but will also mean a further investment of approximately R100 million in the local economy."
Ranbaxy is also planning a major upgrade of the Be-Tabs manufacturing facility to bring its factories in line with new standards. With the re-vamp of the Be-Tabs facilities, the company expects to lead the way for generics manufacturing in South Africa.
The acquisition of Be-Tabs substantially strengthens the basket of products that Ranbaxy brings to the market - especially in the acute and over the counter product streams. The company expects to use the brand equity that Be-Tabs has acquired to leverage market share among wholesalers, pharmacies, dispensing doctors and consumers.
Ranjan Chakravarti, Ranbaxy's Regional Director Africa and Latin America, added: "Ranbaxy entered South Africa with a business model that aimed to meet the country's need for access to affordable healthcare for a wide cross-section of the population. This acquisition - with its market presence and substantive manufacturing capabilities - is another step towards achieving this goal. "
Ranbaxy established a presence in South Africa in 1996 and has been rewarded with excellent growth in the past decade. The acquisition of Be-Tabs is expected to boost earnings by more than double.
Be-Tabs will remain an independent trading entity and will form one of the three companies within the Ranbaxy SA Group - the other two being Sonke Pharmaceuticals and Ranbaxy (S.A.) (Pty) Ltd.
Notes to Editor
About Be-Tabs Pharmaceuticals (Pty) Ltd
Be-Tabs Pharmaceuticals (Pty) Ltd is the largest manufacturer of Penicillin formulations in South Africa and markets & manufactures a portfolio of ethical and over-the-counter (OTC) solid-oral and liquid formulations in South Africa. The Company actively participates in local and export tenders in the African Continent. With sales of approximately USD 30 Million, Be-Tabs is the fifth largest generic company in South Africa and one of the most profitable companies in the market. Be-Tabs Pharmaceuticals (Pty) Ltd was founded in Johannesburg, South Africa, in 1974 and focuses on producing the highest quality products in a competitive pharmaceutical environment. Since its early beginnings, the Company has established itself as a dynamic pharmaceutical house with the object of serving South Africa and the neighboring countries with the best service and products possible.
About Community Investment Holdings
CIH 's humble beginnings were in Healthcare dating as far back as 1992. They are a pre-eminent BEE player in the Healthcare industry with varied interests in that sector, including Pharmaceutical manufacturing facilities. This investment in BeTabs will certainly elevate their profile and position in the industry to be one of the leading generic pharmaceutical manufacturers, not only in South Africa but the Continent. Their intimate involvement and knowledge of the sector because of their long standing experience.endorse their commitment to the access of affordable healthcare to the broader masses. of South Africa .
About Ranbaxy Laboratories Limited
Ranbaxy Laboratories Limited, headquartered in India, is an integrated, research based, international pharmaceutical company producing a wide range of quality, affordable generic medicines, trusted by healthcare professionals and patients across geographies. Ranbaxy's continued focus on R&D has resulted in several approvals in developed markets and significant progress in New Drug Discovery Research. The Company's foray into Novel Drug Delivery Systems has led to proprietary "platform technologies", resulting in a number of products under development. The Company is serving its customers in over 125 countries and has an expanding international portfolio of affiliates, joint ventures and alliances, ground operations in 49 countries and manufacturing operations in 9 countries.