By: IPP Bureau
Last updated : September 05, 2023 10:29 am
This is a strategic acquisition for Cipla South Africa to unlock the future growth opportunities in the South African market
Cipla South Africa, a 100% owned subsidiary of Cipla Limited signed a binding term sheet with Actor Holdings to acquire 100% of the issued ordinary shares of Actor Pharma.
This development underpins Cipla's commitment and investment in its over the counter (OTC) business and supports its journey to be a leading healthcare player in South Africa. This is a strategic acquisition for Cipla South Africa to unlock the future growth opportunities and leverage cost synergies in the South African market.
Actor was founded in 2009 and has quickly grown to become the 5th largest, privately owned, OTC player in the South African private market. Actor specializes in OTC and generic medicine, where they have established strong consumer brands, and identified niche prescription markets in categories of Women's health, Nasal, Cough & Cold and Baby & Child. In addition, Actor has an exciting and innovative pipeline and in its last financial year (FY23) delivered revenue of R234 million, on the back of strong double-digit growth.
Commenting on the acquisition, Umang Vohra, Global MD & CEO, Cipla Limited said, "This is in line with our strategy of strengthening our OTC and wellness portfolio. We believe this is an excellent opportunity to leverage our existing marketing capabilities, unlock future growth opportunities and optimize the performance of our pipeline".
Paul Miller, CEO, Cipla South Africa said, "This is a unique opportunity that helps to build Cipla's OTC portfolio, providing the business with a more balanced revenue contribution between the prescription and over-the-counter business and continue to provide additional quality medicines for consumers".
Lynton Lomas, shareholder of Actor said, "We are delighted to transact with a company of Cipla's stature. With the focussed approach of their commercial team, we are excited to see Actor grow from strength to strength in future".
The transaction is expected to close in the next three to four months, subject to the negotiation and signing of the definitive transaction agreements (which are expected to be concluded imminently) as well as receiving regulatory approval from South Africa's Competition Commission.