Watson buys Strides Arcolab unit for A$375 million; 2011 results

US generic drugmaker Watson Pharmaceuticals (NYSE: WPI) has kicked off the new year with the acquisition of Ascent Pharmahealth, the Australia and Southeast Asia generic pharmaceutical business of India-based Strides Arcolab (BO: 532581), for A$375 million ($395.6 million) in cash.

As a result of the buy, Watson becomes the fifth largest generic pharmaceutical company in Australia based on revenue, and the combined company will be the second largest in terms of total molecules. Watson also becomes the largest generics company in Singapore and gains an established commercial base in Malaysia, Hong Kong, Vietnam and Thailand. Watson expects the transaction to be immediately accretive to 2012 non-GAAP earnings.

Ascent markets a broad portfolio of generics, brands, branded-generic and over-the-counter (OTC) and dermatology and skin care products in Australia with a market share of around 14%. In the Southeast Asia market, Ascent markets branded-generics and OTC products, and is supported by a sales force of about 45 representatives. The company employs approximately 300 employees in Australia and Southeast Asia. Ascent's businesses in Australia and Southeast Asia had total sales of approximately A$150 million in 2011.