In a significant move, Torrent Pharmaceuticals Limited has announced its plans to acquire a majority stake in JB Chemicals and Pharmaceuticals (JB Pharma) from global investment firm KKR. The deal, valued at Rs 25,689 crore, will make Torrent India’s second-most valued pharma company after the merger of the two entities.
Deal Details
Torrent will acquire a 46.39% stake in JB Pharma from promoter Tau Investment Holdings Pte Ltd for approximately Rs 11,917 crore at a share price of Rs 1,600. Additionally, it will buy a 2.80% stake from certain employees for Rs 719 crore. Following this, Torrent will make an open offer to acquire a 26% stake from the open market at Rs 1,639.18 per share, totaling Rs 6,842.8 crore.
Strategic Benefits
The acquisition will provide Torrent with access to JB Pharma’s leading brands in the chronic segment and entry into untapped therapeutic areas like ophthalmology. The deal is expected to create operational synergies, strengthen Torrent’s market share in the Indian pharmaceutical market, and diversify its platform into contract development and manufacturing.
Future Plans
Post-acquisition, JB Pharma will merge into Torrent, with every shareholder holding 100 shares in JB Pharma receiving 51 shares of Torrent. The deal is subject to requisite statutory and regulatory approvals, including from SEBI, Stock Exchanges, CCI, and NCLT.
Quotes from Key Stakeholders
- Samir Mehta, Executive Chairman, Torrent: “We are pleased to have on board the JB Pharma heritage and build on the platform for the future.”
- Gaurav Trehan, Co-Head of Asia Pacific and Head of Asia Pacific Private Equity, KKR: “JB Pharma’s transformation under our stewardship is a testament to KKR’s ability to scale high-quality companies.”
This deal marks the second-largest pharma acquisition in India, after Sun Pharmaceutical Industries’ acquisition of Ranbaxy Laboratories in 2015. The acquisition is expected to scale up Torrent’s revenue and profitability, solidifying its position in the Indian pharma market and expanding its global presence.
