Jubilant Organosys $123m acquisition of US-based Hollister-Stier Labs further consolidates is position in the global custom research and manufacturing (CRAMs) business.
Interestingly, Jubilant will not be moving projects to India following the acquisition. In an interview with CNBC, Hari Bhartia, Jubilant's managing director, says the company will be looking at expanding the Hollister-Stier facility and using it to grow in the US market.
Bhartia also dismissed talks of the all-cash deal being too expensive pointing out that Hollister-Stier's CRAMS business has been growing at almost 40%. The purchase price values the transaction at under 11.2 times Hollister-Stier's 2006 earnings.