India-based Vivimed Labs is buying Uquifa for £35m ($55m) to add API capabilities in Europe and Latin America.
Buying Uquifa gives Vivimed Labs three API (active pharmaceutical ingredient) production sites, two in Spain and one in Mexico. Vivimed Labs plans to use the assets to expand outside of its home market.
“Multi-geographical locations spell stability and cement long-term relationships with customers and channel partners. With Uquifa, Vivimed will have a footprint into Latin America and deeper into Europe”, Santosh Varalwar, managing director of Vivimed Labs, said.
In 2008 Vivimed Labs bought a UK-based dye manufacturer but the Uquifa deal marks its push into the European API sector. Vivimed Labs said Uquifa’s pipeline of filings in Europe and the Americas will drive growth over the next five years. Uquifa posted a £4.5m profit in 2010.
“Strengthening of R&D efforts, opening out new markets and the untapped potential by virtue of our combined knowledge of pharma, a strong and consolidated customer base, ably complemented with cost-efficiencies will mean Uquifa reinforcing its avowed position”, Varalwar said.
Deciding to sell
Yule Catto, the owner of Uquifa, will receive £28.6m in cash, followed by £6.4m in three years, for the assets. Uquifa’s 390 employees, including CEO Mark Robbins, will transfer to Vivimed Labs.
The decision to sell Uquifa is part of a refocusing strategy at Yule Catto. Adrian Whitfield, chief executive of Yule Catto, said: “This marks the final step in a long process of transforming Yule Catto into a substantial highly focussed specialty polymer business.”