Torrent Pharma Prescribes a Dose of Expansion: Acquires JB Chemicals, Eyes Global Dominance

Torrent Pharmaceuticals has announced a landmark acquisition of a controlling stake in JB Chemicals & Pharmaceuticals from global investment firm KKR, in a transaction valuing JB Pharma at ₹25,689 crore on a fully diluted basis. This move positions Torrent as India’s second most-valued pharma company and marks one of the largest deals in the Indian pharmaceutical sector, second only to Sun Pharma’s acquisition of Ranbaxy in 2015.

 

Key Highlights:

 

Two-Phase Transaction Structure:

 

Phase 1: Torrent will acquire a 46.39% stake from KKR for ₹11,917 crore at ₹1,600 per share. It will also buy up to 2.80% from certain JB Pharma employees at the same price.

 

Mandatory Open Offer: Torrent will launch an open offer to acquire up to 26% from public shareholders at ₹1,639.18 per share, totaling ₹6,842.8 crore.

 

Merger Plan:

 

In the second phase, JB Pharma will merge with Torrent Pharma. Shareholders of JB Pharma will receive 51 Torrent shares for every 100 JB Pharma shares held, as per the approved scheme of arrangement.

 

Strategic Rationale:

 

The deal strengthens Torrent’s domestic market position, enhances its chronic therapies portfolio, and expands its global footprint, especially in international CDMO (contract development and manufacturing organization) operations.

 

JB Pharma’s presence in India and international markets (notably Russia and South Africa) and its strong branded product base will create significant operational synergies and new growth avenues for Torrent.

 

Leadership Commentary:

 

Samir Mehta, Executive Chairman of Torrent, emphasized the combined strengths and future growth potential of the merged entity, highlighting synergies in chronic therapies and international expansion.

 

JB Pharma’s CEO, Nikhil Chopra, expressed confidence that the partnership would unlock new opportunities and enhance healthcare access.

 

Regulatory Approvals Pending:

 

The transaction is subject to approvals from SEBI, stock exchanges, the Competition Commission of India, and the National Company Law Tribunal.

 

Source:

Moneycontrol, The Economic Times, BusinessWire, Times of India, NDTV Profit, The Hindu BusinessLine.