Nirma to shell out Rs. 300 Cr. for Core Healthcare acquisition

FMCG major Nirma is expected to shell out around Rs 300 Crore for the acquisition of Ahmedabad-based Core Healthcare, the largest intravenous (IV) fluids manufacturer in the country. Though a memorandum of understanding to acquire the pharma company was signed three months ago, Nirma has since neither announced the payment details nor the structure of the deal. Nirma has been eyeing the healthcare sector for a while and this would give it a solid platform in the segment.

In another related development, Mr Sushil Handa has stepped down as chairman of the company on Thuesday. Sources say he would now focus his entire energy on developing Claris Lifesciences Limited, a pharma company that he promoted about four years ago. He held about 54% stake in Core.

The revenues of Core at present are close to Rs 170 crores, mainly from the HVP segment. Its assets at Sachana, near Ahmedabad is spread over 650 acres. ARCIL had attached 60% of Core's assets earlier this year. Except for the lenders liabilities, all other liabilities are restricted and marginal. Nirma would end up with lenders liability and some other small liabilities.