Page 33 - IACC Newsletter March-April 2014 Issue 03

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December 15, according to Govindarajan. On the question of funding the acquisition, he said it would be done through
debt and internal accruals: “We have enough head room for raising fresh funds as we had already reduced the debt to $
400 million from a peak of $600 million ". On the valuation front the acquisition was reasonable, according to Angel
Broking. “On the funding part, the company can easily fund the same, as the company has comfortable debt: equity of
1:1", it said.
Based in California, Natrol, a unit of Plethico Pharmaceuticals Limited of India, was acquired for about $ 82 million in
October 2007 by Plethico. Angel Broking says Natrol's sales should be around $ 100 million and given the size of the
Aurobindo, the acquired company will form around 4-5% of its FY 16 sales and profitability.
Led by a strong growth in US Generics business, Aurobindo reported a 58.4% jump in net profit at Rs 372.18 crore in the
second quarter ended September, 2014. Revenues also witnessed a 50.5% growth at Rs 2,881.22 crore in that quarter.
A Wall Street Journal report says Natrol filed for Chapter 11 Bankruptcy Protection in June, under pressure from Cerberus
Business Finance LLC, and eventually agreed to put itself for sale to pay off its debts to its lender. In addition to cash to pay
Cerberus, Aurobindo PharmaUSA Inc. has agreed to take on some of Natrol's unpaid bills, according to the papers filed on
Monday in the US Bankruptcy Court in Wilmington.
According to reports appeared in the month of June, Natrol was also has been the target in the past year o f at least 3 law
suits seeking class action status. They were filed questioning the claims of the advertised benefits of glucosamine -related
supplements produced by the company. Natrol denied the allegations.
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