Marksans didn’t disclose the financial details of the acquisition.
The Mumbai-based Marksans has agreed to retain the site employees with existing terms of employment.
The manufacturing site is spread across 47,597 square meters and has approvals to manufacture products from EU, Health Canada and Japanese Health Authority.
The transaction is in cash consideration and is expected to be finalized by April 1, 2023, subject to the usual closing conditions. Teva’s affiliate Watson Pharma Private Limited will continue to own and operate its other manufacturing site at Verna Industrial Estate, Verna Salcette, Goa, India.
Marksans will continue to supply Teva’s affiliates for certain products until the end of FY23 as part of the agreement, which can be extended further with mutual agreement.
Through acquisition of Teva’s manufacturing plant, Marksans plans to double the existing Indian capacity from 8 billion units per annum currently.
Marksans plans to manufacture tablets, hard and soft gel capsules, ointments, gummies, creams, from the new capacity.
The new capacity will be an addition to the three existing manufacturing sites in Southport (UK), Farmingdale (US) and Goa (India).
“I am excited to share that the acquisition has potential to significantly expand our manufacturing capability and accelerate our core growth strategy,” said Mark Saldanha, managing director of Marksans Pharma.
“It will supplement our innovative product portfolio, as we plan to begin manufacturing of creams, ointments, etc. in India. It is also a testament to our commitment to invest in product innovation, expand capacities, and drive market share gains,” Saldanha added.
Torreya acted as the exclusive financial advisor to Marksans for the acquisition.