Torrent Pharmaceuticals has announced a major acquisition, signing definitive agreements to purchase a 46.39% stake in JB Chemicals and Pharmaceuticals from global investment firm KKR. The deal is valued at Rs 11,917 crore, with shares priced at Rs 1,600 each.
In addition, Torrent will launch a mandatory open offer to buy another 26% of JB Pharma’s shares from public shareholders at Rs 1,639.18 per share. This would take the total acquisition cost to Rs 13,556 crore and values JB Pharma at Rs 25,689 crore on a fully diluted basis.
The two companies will merge through a scheme of arrangement, and after the merger, shareholders holding 100 shares in JB Pharma will receive 51 shares of Torrent.
Torrent has also shown interest in acquiring up to 2.80% equity from JB Pharma employees at the same price paid to KKR. The deal marks a key move by Torrent to expand its presence in the pharmaceutical sector by combining chronic care expertise with international contract development and manufacturing services.
Samir Mehta, Executive Chairman of Torrent, said: “Torrent’s deep India presence and JB Pharma’s fast growing India business, combined with the CDMO and international footprint offers immense potential to scale both revenue and profitability. This strategic alignment furthers our goal of strengthening our presence in the Indian pharma market, and build a larger diversified global presence. Moreover, the CDMO platform provides a new long-term avenue of growth for Torrent.”
Torrent Pharma, with a market value of Rs 1.13 lakh crore, ended trading on Friday at Rs 3344.40, up 3.68%. JB Chemicals, valued at Rs 28,080 crore, closed at Rs 1799.35, up 2.72%.
Torrent Pharma, the flagship company of the Torrent Group, earns over Rs 11,500 crore annually and operates in more than 50 countries. It has 8 manufacturing plants, including 5 approved by the USFDA. It is among the top 5 companies in cardiovascular, gastrointestinal, CNS and dermatology therapies.
JB Pharma is one of India’s fastest growing pharma firms and a leader in hypertension treatment. With strong presence in India, Russia and South Africa, the company has eight advanced manufacturing facilities including one for lozenges.
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