Entero Healthcare Strengthens Market Presence with Three Key Acquisitions

Entero Healthcare Solutions Limited recently informed the stock exchanges that its Board of Directors has approved the execution of definitive agreements to acquire three entities directly: Gourav Medical Agencies Private Limited (GMAPL), Sai Pharma Distributors Private Limited (SPDPL), and Srinivasa Lifecare Private Limited (SLPL). These acquisitions are strategic moves to expand Entero Healthcare’s footprint in the wholesale distribution of pharmaceuticals and allied products across different regions in India.

Gourav Medical Agencies Private Limited

GMAPL is engaged in the business of wholesale distribution of pharmaceuticals, surgical products, and other allied healthcare products. With a paid-up equity share capital of ₹1,00,000, GMAPL operates within the same business line as Entero Healthcare, making it a natural fit for the company’s expansion strategy.

The acquisition of GMAPL will allow Entero Healthcare to strengthen its presence in the state of Rajasthan, thereby generating additional business and revenue on a consolidated basis. The acquisition, expected to be completed by September 30, 2024, involves the purchase of 8,000 equity shares at ₹10 per share, amounting to a total consideration of ₹80,000. Furthermore, GMAPL is considering the acquisition of the business undertaking of Gourav Medical Agencies, a proprietorship owned by Mr Sanjay Kumar Goyal, as a going concern on a slump sale basis.

Sai Pharma Distributors Private Limited

SPDPL is another key player in the wholesale distribution of pharmaceuticals and allied products, with its operations based in Telangana. The acquisition of SPDPL will enable Entero Healthcare to significantly expand its market reach within Telangana. The acquisition deal includes the purchase of 6,93,000 equity shares, representing 70% of the total issued and paid-up equity share capital of SPDPL, at a price of ₹1,114 per share.

The total consideration for this transaction amounts to ₹77.2 crore. This consideration includes contingent payouts that are dependent on the fulfilment of certain agreed-upon future financial performance targets by SPDPL. The acquisition is expected to be finalised by September 30, 2024.

Srinivasa Lifecare Private Limited

SLPL, similar to GMAPL and SPDPL, is involved in the wholesale distribution of pharmaceuticals, surgical products, and other allied healthcare products. The acquisition of SLPL aligns with Entero Healthcare’s business model and will further strengthen the company’s position in Telangana. The acquisition involves the purchase of 7,000 equity shares of SLPL at a price of ₹10 per share, amounting to a total consideration of ₹70,000. This transaction is also expected to be completed by September 30, 2024.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.