In a regulatory filing, Aventis Pharma said that with this acquisition, the company will advance its sustainable growth strategy in India. It will also facilitate the creation of a consumer healthcare and wellness platform.
The Universal Medicare's turnover of the business is approximately Rs 110 crore.
The transaction should close in the fourth quarter of 2011, subject to certain conditions being fulfilled said the announcement.
Under the proposed transaction, Universal Medicare will manufacture the products that Aventis Pharma will be acquiring on mutually agreed terms.
"This strategic acquisition will allow Aventis Phatma and Sanofi Group to reach out to large sections of India's population through a broad offering compromising of pharmaceuticals, vaccines and now nutraceiticals," said Dr. Shalesh Ayyangar, Managing Director, Aventis Pharma and Vice President, South Asia, Sanofi.
"India is one of our most important markets in the emerging world and this acquisition reinforces our commitment to invest and grow our presence in India through a diversified portfolio that is focused on patients' needs," said Antoine Ortoli, Senior Vice President, Intercontinental Region, Global Operations of Sanofi.
VIEW: A small position at 2% of your portfolio or even less. This stock should be followed in the coming quarters. Especially as the economic slowdown will hit the country and the stock market realizes it, the pharmaceutical and FMCG companies will help provide protect the portfolio.