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Mumbai, May 3: Wockhardt has acquired French pharmaceutical group Negma Laboratories for $265 million in an all-cash deal. The transaction is valued at 1.8 times the sales of the French firm.

Negma Laboratories is the fourth largest independent, integrated pharmaceutical group in France with sales of $150 million.

With this acquisition, Wockhardt has become the largest Indian pharmaceutical company in Europe with more than 1,500 employees in the continent.

“Negma is a unique acquisition for Wockhardt. It is a research-based pharmaceutical company with 172 patents. The acquisition will help Wockhardt extend this portfolio to other European markets where it has strong presence,” said Wockhardt chairman Habil Khorakiwala.

“The buyout will provide us the right vehicle to enter the French generics market valued at $2 billion, leveraging Wockhardt’s robust EU portfolio and impressive pipeline. With this acquisition, Wockhardt will enjoy a pan-European presence, covering all the key markets — Germany, the UK, Ireland and now France,” Khorakiwala said.

Negma leads the race in the osteoarthritis/rheumatology, phlebotonic and the arterial hypertension segments.

With the Negma acquisition, Wockhardt’s European business will account for more than 60 per cent of the total revenues. The company has a portfolio of 130 products in Europe. Negma is the company’s fifth acquisition in Europe after Wallis, CP Pharmaceuticals (both in the UK), Esparma in Germany and Pinewood Laboratories in Ireland.

Wockhardt will now have four manufacturing facilities in Europe. It makes active pharmaceutical ingredients, injectables, tablets, capsules and creams.

Negma is the company’s third acquisition in less than 12 months. “We have a track record of successful value creation post acquisition. We expect to demonstrate the same momentum with Negma,” said Khorakiwala. Gottlieb Steen & Hamilton LLP was the legal adviser for the transaction.

The Wockhardt stock was up 0.47 per cent to close at Rs 430.85 on the BSE today.