The Swedish contractor has paid the Sobti family SEK75m ($9.2m) in cash and will pay the rest in shares.
Recipharm invested in Nitin in 2016, paying SEK824m for a 74% holding. At the time, the firm said the acquisition would expand its geographic reach and bolster its capabilities in in sterile injectables and freeze-dried drugs.
Speaking today Recipharm CEO Thomas Eldered said, “I have been particularly pleased with the way the performance in Nitin Lifesciences has developed since it became part of the Recipharm Group.
“Both sales and margins have grown in the business despite the recent macro-economic volatility in India and we foresee this favourable development to continue,” he said.
Eldered added that buying the remaining Nitin shares would let Recipharm “better exploit operational synergies with our other Indian business.”
IT, procurement synergies
Eldered told us "We do not expect any plant closures or work force reductions. On the contrary we are expanding in India. The synergies are to be found in overhead and support, administrative, IT, procurement functions. We also expect benefits from a full range and coordinated service offering in India."
The Nitin executive team will continue to lead the firm.
In addition, according to Eldered, the execs will “take on the responsibility to develop and grow Recipharm’s total business in the Indian and emerging markets”.