Eris announces Acquisition of Oaknet Healthcare

Recently, the Indian branded formulations manufacturing company, Eris Lifesciences Limited, announced that it has acquired the dermatology-based domestic formulations company named Oaknet Healthcare Pvt Ltd for a total valuation of Rs 6,500 million. Eris will acquire a 100 percent stake in Oaknet for Rs 6,500 million This acquisition of Oaknet Healthcare by Eris Lifesciences will be completed by way of a share purchase agreement. After the deal, the Mumbai-based Oaknet will become a wholly-owned subsidiary of Eris Lifesciences. The acquisition will be financed by Rs 3,000 million of internal accruals and Rs 3,500 million of borrowings.

After the acquisition, Chairman and Managing Director of Eris Lifesciences Ltd., Amit Bakshi, said, “As Oaknet becomes part of the Eris Group, it provides us with a robust growth platform in the areas of Dermatology and Cosmetology. In line with Strides and Zomelis acquisitions, we are confident that the Oaknet transaction will create long-term value for our shareholders.” Currently, Oaknet has nearly 100 percent coverage of around  11,000 dermatologists in India with a 60 percent penetration.

Informing about the acquisition, Krishnakumar V, Executive Director & Chief Operating Officer of Eris Lifesciences Ltd., commented, “The acquisition of Oaknet brings marquee brands like Cosvate and Cosmelite into the Eris portfolio. We expect to bring to bear multiple value creation levers including in-house manufacturing, new product launches, expansion of field force productivity, and enhancement of operational efficiency.”