India's Plethico Pharmaceuticals Ltd (PLPH.BO: Quote, Profile, Research) plans to buy one company each in the U.S and Brazil in the next couple of years, spending a total $150 million, a top official said on Wednesday.
Plethico plans to bid for a nutraceutical firm in the United States, and has also signed a preliminary confidentiality agreement with another nutraceutical firm there, Sanjay Pai said, adding the aim is to strike one deal for $80-$100 million.
"There are so many good deals coming our way in the U.S. right now in the nutraceuticals space," Pai said. "People have started approaching us for acquisitions after Natrol."
Last year, Plethcio acquired U.S.-based branded nutritional products maker Natrol Inc for about $81 million.
Nutraceuticals are food extracts used as dietary supplements.
In Brazil, Plethcio is in talks with two companies, one a herbal products maker and the other a maker of allopathic and over-the-counter products, Pai said. One of these firms could be acquired for about $50 million, he added.
"Brazil is a great market. It offers great volume and decent margins," he said, adding the market offered 15-20 percent earnings before interest and tax margins.
"We have been looking for acquisitions in U.S., Brazil and UK. Somehow, there have been no juicy deals forthcoming in UK so far."
The company was in a strong position to raise funds through debt and various options, he said, adding that would be decided when a deal was sewn up.
"Over the next 1- to 1-½ years there will be a lot of inorganic activities happening in the company."
Shares in the company were trading 8 percent up at 404.45 rupees in a weak Mumbai market.
Plethico plans to bid for a nutraceutical firm in the United States, and has also signed a preliminary confidentiality agreement with another nutraceutical firm there, Sanjay Pai said, adding the aim is to strike one deal for $80-$100 million.
"There are so many good deals coming our way in the U.S. right now in the nutraceuticals space," Pai said. "People have started approaching us for acquisitions after Natrol."
Last year, Plethcio acquired U.S.-based branded nutritional products maker Natrol Inc for about $81 million.
Nutraceuticals are food extracts used as dietary supplements.
In Brazil, Plethcio is in talks with two companies, one a herbal products maker and the other a maker of allopathic and over-the-counter products, Pai said. One of these firms could be acquired for about $50 million, he added.
"Brazil is a great market. It offers great volume and decent margins," he said, adding the market offered 15-20 percent earnings before interest and tax margins.
"We have been looking for acquisitions in U.S., Brazil and UK. Somehow, there have been no juicy deals forthcoming in UK so far."
The company was in a strong position to raise funds through debt and various options, he said, adding that would be decided when a deal was sewn up.
"Over the next 1- to 1-½ years there will be a lot of inorganic activities happening in the company."
Shares in the company were trading 8 percent up at 404.45 rupees in a weak Mumbai market.
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