Bangalore based Strides Arcolab plans to acquire Aspen Pharmacare's stake in their two oncology JVs for $117 million (approx Rs 457.65 crore). The two companies had formed 50:50 JVs - Onco Laboratories and Onco Therapies - in 2007.

In early March 2010, Strides agreed to acquire Aspen's Campos facility in Brazil for $75 million (approx Rs 337.5 crore). The Campos plant manufactures penems and penicillin.

The total payout of $192 million (approx Rs 864 crore), including $75 million for Campos facility and $117 million for oncology JV stakes, is likely to be done over the span of 14 months. According to sources, the payment terms for the deal are based on certain future milestones with an outside date for settlement of all outstanding amounts by 30 April 2011.

As part of the deal, Strides is likely to license the oncology drugs to Pharmacare, the Aspen Group firm, for marketing in certain geographies to be earmarked when the transaction is completed by April 2011.

Post acquisition, the two JVs - Onco Therapies India and Onco Laboratories Cyprus - will become subsidiaries of Strides.