Jubilant Organosys completes acquisition of Hollister-Stier Laboratories

Jubilant Organosys completes acquisition of Hollister-Stier Laboratories
01 June 2007
Jubilant Organosys
Jubilant Organosys completes acquisition of Hollister-Stier Laboratories
Further strengthen its global CRAMS business given Hollister-Stier's position in the contract injectables segment
Jubilant Organosys Ltd., an integrated pharmaceutical industry player and India's largest Custom Research and Manufacturing Services (CRAMS) company, announced today the completion of the largest overseas acquisition in Contract Manufacturing by an Indian company, through its purchase of Hollister-Stier Laboratories (Hollister).
The Company had first announced the Hollister acquisition on April 24, 2007. The transaction is effective June 01, 2007. The results of Hollister therefore will reflect in Jubilant's consolidated financials from Q1 FY2008 onward.
The base purchase price of US$ 122 Million and the reimbursement for the capacity augmentation programme of US$ 18.7 Million has been financed through cash-on-hand from an earlier FCCB issue and also by leveraging Hollister's balance sheet. The transaction is attractively valued given Hollister's strong earning growth prospects.
Contract manufacturing of sterile Injectables at Hollister, a robust and rapidly expanding operation by itself has strengthened Jubilant's Pharmaceuticals & Life Science Products segment - further enhancing its position in the regulated markets. With a CAGR of over 40% for the past 4 years, this acquisition signifies an addition of a novel growth platform in the high-value & premium products space. Hollister also brings with it a stable and profitable Allergy business that has strong brand loyalty and has provided quality products and services for more than 85 years. The core management team of Hollister, which built this successful operation, led by Mr Anthony D Bonanzino, will continue to manage and grow the business going forward.
Over 90% of Hollistier's contract manufacturing service revenues accrue from innovator pharmaceutical companies and the operation therefore adds further scale and depth to Jubilant's services capability in its CRAMS business. During CY 2006 Hollister recorded Operating Profit of US$ 10.9 million with Revenues of US$ 55 million. The outlook for the current year is significantly positive where Jubilant intends to further strengthen its CRAMS business with the addition of contract manufacturing of sterile injectable business.
About Jubilant Organosys
Jubilant Organosys Ltd. is an integrated pharmaceutical industry player, one of the largest custom research and manufacturing services (CRAMS) and drug discovery and development services companies out of India. The company has presence across the pharmaceuticals value chain right from drug discovery, functional chemistry and clinical research services to custom research and manufacturing services for advance intermediates and fine chemicals, Active Pharmaceutical Ingredients and Dosage Forms. Jubilant Organosys has more than 3300 employees across organization in India, USA, Europe and China. It has five manufacturing locations in India and one in USA. The Company also has subsidiaries in USA, China and Belgium.
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For further information please contact:
Vandana Dhir Siddharth Rangnekar
Jubilant Organosys Limited Citigate Dewe Rogerson
Tel: (0120) 4361847, 2516601-11 ext. 1847 Tel: (022) 4007 5005
Fax: (0120) 2516629 Fax: (022) 2284 4561
E-mail: vandana_dhir@jubl.com E-mail: siddharth@cdr-india.com
Statements in this document relating to future status, events, or circumstances, including but not limited to statements about plans and objectives, the progress and results of research and development, potential product characteristics and uses, product sales potential and target dates for product launch are forward-looking statements based on estimates and the anticipated effects of future events on current and developing circumstances. Such statements are subject to numerous risks and uncertainties and are not necessarily predictive of future results. Actual results may differ materially from those anticipated in the forward-looking statements. Jubilant Organosys may, from time to time, make additional written and oral forward looking statements, including statements contained in the company's filings with the regulatory bodies and our reports to shareholders. The company assumes no obligation to update forward-looking statements to reflect actual results, changed assumptions or other factors.
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