Strategic Acquisition: Major MedTech Expansion by Indian Pharma Giant
Zydus Lifesciences Limited has announced its strategic decision to acquire a controlling stake in Amplitude Surgical SA, a France-based company listed on Euronext Paris.
Zydus Lifesciences Limited has announced its strategic decision to acquire a controlling stake in Amplitude Surgical SA, a France-based company listed on Euronext Paris. The acquisition involves purchasing 85.6 per cent of Amplitude Surgical's equity shares at a price of Euro 6.25 per share, amounting to a total consideration of Euro 256.8 million. Following this, Zydus plans to initiate a mandatory simplified cash tender offer for the remaining shares, potentially leading to a full acquisition and delisting of the target entity.
Amplitude Surgical, a notable player in the MedTech sector, specializes in lower-limb orthopaedic products and solutions. It boasts a significant presence across various countries, including France, Brazil, and Australia, with a turnover of Euro 106 million as of June 2024. This acquisition aligns with Zydus Lifesciences' global MedTech strategy, leveraging the target's strengths in the orthopaedics market and expanding its global footprint. The acquisition is subject to regulatory approvals, including consultations with the Social and Economic Committee of Amplitude Surgical and the French Minister of Economy. The transaction is expected to be completed by the first half of 2025, contingent on receiving the necessary clearances
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Company Overview
Zydus Lifesciences Limited, a prominent player in the Indian pharmaceutical sector, is currently trading at a stock price of Rs 900 with a market capitalization of over Rs 90,000 crores. The stock has experienced a 52-week high of Rs 1323.9 and a low of Rs 859.15. Over the past three years, the company has delivered a return of 140.79 per cent, classifying it as a multibagger stock. The price-to-earnings (PE) ratio stands at 19.75, reflecting its valuation in the market. Despite a one-year return of negative 8.6 per cent, Zydus continues to focus on strategic expansions and acquisitions to bolster its market presence.
Disclaimer: The article is for informational purposes only and not investment advice.