Intas buys UK generics business from Teva

India’s Intas has signed a deal to buy a UK generics business from Teva for £600 million, a sell-off required because of EU competition rules.

Teva earlier this year bought the Actavis generics business from Allergan in a $40.5 billion deal, but had to sell off the UK business to comply with EU antitrust rules.

According to press reports, Intas saw off competition from Indian rival Aurobindo and London-based private equity firm Cinven to acquire the business.

Intas agreed to buy the business, which generated sales of more than £250 million last year through its wholly owned subsidiary, Accord Healthcare, in a cash deal.

It said the deal will establish Accord as a “leading player” in the UK generics market, giving increased access to UK and Irish retail and hospital markets.

The deal more than doubles Intas’ pan-European operations, with pro-forma revenues exceeding $500 million, and makes it into a global top 20 generics company.

The transaction will complete within the next three months, subject to regulatory approvals.

Accord said it is committed to UK manufacturing, and noted it has recently reinstated a facility closed by Sanofi.

A former Actavis plant in Barnstaple, Devon will become the Accord’s fourth UK site, the company said.

Binish Chudgar, vice chairman and managing director of Intas, said: “Through our subsidiary, Accord Healthcare, we have been operating successfully in Europe for more than a decade and this acquisition will make Accord a leading generics player in the UK market.

“We have a clear plan for the continuation and development of the Barnstaple site and the Actavis UK and Ireland team; we look forward to welcoming them to the Intas Group.”

On Monday, Teva completed its $500 million acquisition of Anda, another generics business previously owned by Allergan.