(Yicai Global) June 21 -- Zhejiang Xianju Pharmaceutical Co. [SHE:002332] will shell out USD122.5 million (EUR110 million) to speed up its international bulk drug development by acquiring two Italian pharma companies.
The Xianju-based company said yesterday that it will purchase Newchem SpA and Effechem Srl for EUR109 million and EUR1 million, respectively.
Xianju Pharma said it will establish a wholly-owned Italian subsidiary, Xianju Pharma Italy Srl, to consummate the deals.
The sellers of the Italian firms are Fincarl SpA and Carletti Speranza. Speranza is the actual controller of the target companies and directly and indirectly holds 100 percent of their shares, Xianju Pharma said.
After the acquisition, Xianju Pharma said it will employ Speranza as chief executive officer of Newchem and Effechem for three years and sign a non-compete agreement with her.
Newchem researches, develops and produces steroid and hormone bulk drugs, and its products are used in fields including agriculture, food and cosmetology. Effechem is mainly engaged in drug sales, Xianju Pharma said.
Xianju Pharma said the purchases will help it optimize its steroidal drug industrial chain, expand its international business and boost exports while connecting with customers abroad.
Zhejiang Xianju Pharmaceutical Co. is the largest steroid manufacturer in China.