Jubilant Organosys buys U.S. generic co

By agencies   |   Friday, 01 July 2005, 19:30 IST
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HYDERABAD: Jubilant Organosys Ltd has announced that acquisition of Trinity Laboratories, Inc. along with its wholly owned subsidiary Trigen Laboratories Inc. ('Trigen'), a U.S. based generic pharmaceutical Company. As per the agreement signed on July 1, 2005, the Company will hold a 64 percent equity stake in Trinity for a cash payment of $12.25 million of which $8.25 million will be paid to the existing shareholders and the balance retained for growth capital. The company will invest additional $ 8.42 million until December 2006, which will increase the company's equity interest in Trigen to 75 percent. An additional $4.05 million may be payable by the company on conversion of existing share options to maintain its shareholding in Trigen. Overall, the company will invest up to $24.72 million, $8.25 million to existing shareholders and up to $ 16.47 million in growth capital to acquire 75 percent stake in Trigen. In a joint statement, commenting on the acquisition Shyam S Bhartia. Chairman & Managing Director and Hari S Bhartia, Co-Chairman & Managing Director of the company said, "This acquisition furthers our objective of strengthening our position in the global pharma & life sciences industry and facilitates Jubilant's entry into the high opportunity US market. With Jubilant's API manufacturing capabilities and R&D expertise, being complemented by Trigen Laboratories' USFDA approved dosage forms manufacturing facilities & knowledge of the US market. We are now well positioned to enhance our standing in higher end of the life sciences value chain."