Piramal to acquire Ash Stevens Inc for USD 53 mn

New Delhi : Piramal Enterprises is set to acquire US-based contract development and manufacturing firm Ash Stevens Inc for up to USD 52.95 million (over Rs 350 crore).

The firm's "wholly-owned US subsidiary has entered into an agreement to acquire 100 per cent stake in Ash Stevens Inc in all cash deal for a total consideration of USD 42.95 million plus an earn out consideration capped at USD 10 million, subject to achievement of certain EBITDA targets, payable over next six months," Piramal said in a BSE filing.

This potential transaction is expected to be completed by end of August, it added.

"Ash Stevens will add high potency capabilities to the services we offer our customers," Vivek Sharma, Pharma Solutions business CEO, Piramal Enterprises, said.

High Potency APIs (HPAPI) is one of the fastest growing segments in the pharmaceutical sector and more than 50 per cent of the HPAPIs are anti-cancer drugs, he added.

"We have already identified areas where we can create significant value together, and will be moving forward rapidly to achieve those objectives," Ash Stevens Inc CEO Stephen Munk said.

"We look forward to working with the Piramal leadership and management team, to develop API solutions that benefit customers and improve the lives of patients," he added.

Ash Stevens is a full service CDMO (contract development and manufacturing organisation) focused on development and manufacturing of high potency active pharmaceutical ingredients (HPAPIs).