Laurus to acquire majority stake in Richcore
Hyderabad-based company to acquire 72.55% stake in Bengaluru biotech firm for over Rs 246 crore
Hyderabad: Laurus Labs has signed a definitive agreement to acquire a majority stake in Richcore Lifesciences, a biotech company based in Bengaluru. Laurus will acquire 72.55 per cent of Richcore’s shares from Eight Roads Ventures and VenturEast for a value of Rs 246.7 crores.
Richcore has advanced R&D and manufacturing facilities, develops and manufactures biotech products critical for manufacturing biological drugs. The company also helps its global customers to develop and scale-up their bioprocesses by providing contract research, development, and manufacturing services.
This acquisition marks Laurus Labs’ entry into the broader biologics and biotechnology segments, providing the company access to its high growth areas, globally and in India. Laurus Labs will help and drive Richcore to achieve scale and improve product offerings.
With this acquisition, Laurus adds a fourth revenue stream to its three existing divisions – API, Formulations and Synthesis. Following the successful closure of the transaction, Richcore will be renamed to Laurus Bio.
The current promoters of Richcore led by Subramani Ramachandrappa will continue as promoters of Richcore and will be responsible for its management and operations. Laurus Labs will fund the acquisition from its internal accruals and this acquisition will be revenue and PAT accretive.
Commenting on the development, CEO of Laurus Labs Dr Satyanarayana Chava said, “Laurus Labs will bring scale to Richcore’s operations and can become a major player in the biotech CDMO space. This will also help Laurus in becoming a leader in biocatalysis as Richcore brings significant expertise in enzyme development for pharmaceutical and other industrial applications.”
Subramani Ramchandrappa, CMD, Richcore Lifesciences said, “Richcore and Laurus Labs’ coming together marks the convergence of biotechnology and chemistry faculties. Leveraging the synergies arising from Laurus’s experience and Richcore’s innovation, we plan to build scale as we continue to serve our existing customers and enter new biotech segments.”
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