Mumbai, Dec. 23: Piramal Healthcare has acquired Minrad International Inc — a US-based anaesthetic manufacturer — for $40 million.

Under the terms of an agreement, Minrad will be merged with a wholly owned subsidiary of Piramal. On the completion of the merger, the stockholders of Minrad will receive $0.12 per share.

Piramal has also agreed to acquire Minrad’s 8 per cent senior secured convertible notes. The merger along with the assumption of debt value the deal at $40 million.

The boards of both the companies have approved the deal.

The transaction, expected to close in the first quarter of 2009, is contingent on approval by Minrad’s stockholders and other customary conditions.

According to a Piramal statement, the merger will give it access to key intellectual property for the manufacture of inhalation anaesthetics and provide the Indian company an immediate entry into the US market for sevoflurane — the largest selling inhalation anaesthetics in the US.

Ajay Piramal, chairman of the Piramal group, said, “The offer to Minrad is consistent with our commitment to build a serious global presence in critical care.”

Piramal produces halothane and isoflurane, both inhalation products.

Minrad’s product portfolio consists of isoflurane, enflurane and sevoflurane.

“Now, we will have access to all five products in the inhaled anaesthetic segment,” he said.

The merged entity will have a marketing and sales network across 108 countries with 178 distributors.