Aventis Pharma, a part of French drug maker Sanofi, on Wednesday said it will acquire the branded nutraceutical formulations business of Mumbai-based Universal Medicare Pvt Ltd for an undisclosed sum.
The company has entered into a definitive agreement for the proposed acquisition, Aventis Pharma said in a statement.
While the company did not disclose the size of the deal, reports said it could be valued around Rs 500 crore.
Shares of Aventis Pharma jumped 5.72 per cent to close at Rs 2,155 on BSE amid weak broader market.
When contacted Aventis Pharma spokesperson said: "At the time of signing, it is a statutory requirement for us to disclose that we have entered into a definitive agreement to acquire the commercial business of Universal Medicare. We will definitely share the final and accurate information once the deal is actually closed."
Universal Medicare manufactures, markets and distributes branded nutraceutical formulations in India, including its popular cod liver oil capsules.
For the year ended March 31, 2011, Universal Medicare's nutraceutical business had a turnover of nearly Rs 110 crore.
The deal, which has been approved by the boards of both companies, is expected to close in the fourth quarter of 2011.
According to the agreement, nearly 750 employees of Universal Medicare will shift to Aventis Pharma, it said.
"... They will not only add value by giving new life to this business but will also nurture our employees through best in class training and advanced marketing practices in a multinational environment," Universal Medicare CMD Vikram Tannan said.
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