Sun Pharma to Acquire Ranbaxy in a US$ 4 Billion Landmark Transaction

  Sun Pharma to Acquire Ranbaxy in a US$ 4 Billion Landmark Transaction

Business Wire

MUMBAI, India -- April 7, 2014

Sun Pharma and Ranbaxy today announced entering into definitive agreements for
Sun Pharma to acquire 100% of Ranbaxy in an all-stock transaction. Under these
agreements, Ranbaxy shareholders will receive 0.8 share of Sun Pharma for each
share of Ranbaxy. This exchange ratio represents an implied value of Rs 457
for each Ranbaxy share.

This combination creates the 5^th largest specialty generics company in the
world, and the largest pharma company in India. The combined entity will have
operations in 65 countries, 47 manufacturing facilities across 5 continents,
and a significant specialty + generic portfolio, including 629 ANDAs. On a pro
forma basis, the combined entity’s revenues are estimated at US$ 4.2 billion
with EBITDA of US$ 1.2 billion for the twelve month period ended December 31,
2013. The transaction value implies a revenue multiple of 2.2 based on 12
months ended December 31, 2013.

Dilip Shanghvi, Managing Director of Sun Pharma, said, “Ranbaxy has a
significant presence in the Indian pharma market and in the US where it offers
a broad portfolio of ANDAs and first-to-file opportunities. In high-growth
emerging markets, it provides a strong platform which is highly complementary
to Sun Pharma’s strengths. We see tremendous growth opportunities and are
excited with the prospects to create lasting value for both our shareholders
through a successful combination of our franchises.”

“We believe this transaction brings significant value to all Ranbaxy
shareholders. Sun Pharma has a proven track record of creating significant
long-term shareholder value and successfully integrating acquisitions into its
growing portfolio of assets. We are confident that Sun Pharma is the ideal
partner to help us realize our full potential and are excited to participate
in future value creation opportunities,” stated Arun Sahwney, Managing
Director and Chief Executive Officer of Ranbaxy.

The proposed transaction has been unanimously approved by the Boards of
Directors of Sun Pharma, Ranbaxy, and Ranbaxy’s controlling shareholder,
Daiichi Sankyo. Ranbaxy’s board and Sun Pharma’s board have recommended
approval of the transaction to their respective shareholders.

Sun Pharma expects to realize revenue and operating synergies of US$ 250
million by third year post closing of the transaction. Sun Pharma intends to
leverage the human capital that has supported both companies in order to drive
future growth.


Sun Pharma
Frederick Castro
Corporate Communications
Press spacebar to pause and continue. Press esc to stop.