Asahi Songwon Colors has executed a Share Purchase Agreement (SPA) with Atlas Life Sciences Private Limited (ALSPL) and certain identified promoters of ALSPL for acquisition of 100% stake in ALSPL in three tranches from certain identified promoters and other shareholders of ALSPL.

The acquisition of shares under first tranche i.e. 78% stake in ALSPL is completed on April 18, 2022. Balance 22% stake in ALSPL will be acquired in two tranches (i.e. 11 % stake in each tranche) and is expected to be completed on or before March 31, 2025.

Atlas Life Sciences Private Limited is one of the leading manufacturers of Active Pharmaceutical Ingredients (API) and Bulk Drugs, with dominant position in Pregabalin (PG) and 4 other API's and one intermediate (R-CMH for PG).

Asahi Songwon Color has signed SPA in order to add a new growth lever and to create significant value by leveraging combined capabilities and unlock synergies entered into API and Bulk Drug business. The API business of ALSPL has diversified portfolio of 6+ products with several of them in R&D product pipeline.

The acquisition of shares under first tranche of ALSPL representing 78% stake in ALSPL is completed for a consideration of Rs 48 crores. Remaining 6,60,000 shares representing 22% stake in ALSPL will be acquired in two tranches (representing 11% stake in each tranche) for a consideration determined based on EBITDA prevailing for the period October 1, 2022 to September 30, 2023 and October 01, 2023 to September 30, 2024 respectively, in terms of the SPA.