(LAWFUEL) – Middletons recently advised Generic Health Pty Ltd on the sale of a minority stake of its business to Indian pharmaceutical company, Lupin Ltd. Generic Health, an Australian owned and operated generic pharmaceutical company, markets a wide range of quality generic prescriptions and over the counter products.
The sale, led by Middletons’ partner Adam Levine, was a combination of cash and ‘in kind’ under a new supply agreement, and involved unique negotiations due to the cultural differences between Indian and Australian organisations.
“Indian companies typically have a large principal shareholder, which can cause tension when they are looking to invest in Australian organisations,” Levine said.
A unique liquidity option structure was established, enabling Lupin to increase its equity in Generic Health or exit its investment if Lupin could not acquire a controlling position over a permitted timeframe. Exit multiples and take out option structures were set in place to give a degree of certainty for both Lupin and Generic Health. “This was a unique solution, which has the potential to assist not only Indian investors who will benefit from the option to ‘step up or be taken out’, but also local targets looking to maintain a controlling interest,” said Levine.