Strides Arcolab buys back divested Brazillian facility from Aspen for $75 million

Bangalore-based pharmaceutical company, Strides Arcolab  is buying back its Campos facility in Brazil from South Africa's Aspen for $75 million in an all cash deal as part of its sstrategy to focus on core specialty injectable business.

The facility manufactures penems and penicillins, which Strides had divested to Aspen in 2007 when it exited its LAtin American operations.

Strides held a 51-per cent stake in Strides Latina, a Latin American joint venture with Elcemar Almeida and Associates, which held the remaining 49 per cent. In November 2007, Strides sold its 51 per cent stake to Aspen for $152.5 million.

Strides Latina operates in Brazil under the name Cellofarm, in Mexico as Solara and in Venezuela under the brand Sumifarma.

The Compos facility was one of the two manufacturing plants owned by Cellofarm, which Strides has now reacquired from Aspen. Strides had built the state-of-the-art sterile injectable facility at Compos in Rio de Janeiro, at a cost of $30 million in May 2007.

The transaction has created an opportunity for Aspen's South African manufacturing facilities to export product to the Latin American market.