Latest news with #JBPharma


Economic Times
5 days ago
- Business
- Economic Times
Torrent Pharma seeks CCI nod to acquire majority stake in JB Chemicals for Rs 19,500 cr
Live Events (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel New Delhi, Ahmedabad-based Torrent Pharmaceuticals has sought fair trade regulator CCI's clearance to acquire a majority stake in in J B Chemicals and Pharmaceuticals in a Rs 19,500-crore the completion of the deal, Torrent Pharmaceuticals will become India's second most valued pharma development came after Torrent Pharmaceuticals in June this year announced the acquisition of a majority stake in J B Chemicals and Pharmaceuticals in a Rs 19,500-crore deal."The proposed combination relates to acquisition of shareholding by the acquirer (Torrent Pharmaceuticals Ltd) in the target (J B Chemicals & Pharmaceuticals Ltd) and the subsequent amalgamation of the target with the acquirer," according to a notice filed with the Competition Commission of India (CCI).Torrent Pharmaceuticals is the flagship company of the Torrent group and is engaged in the business of manufacturing and sale of pharmaceutical formulations (FDFs) across therapeutic segments.J B Chemicals & Pharmaceuticals is engaged in business of manufacturing and marketing of diverse range of FDFs and APIs (Active Pharmaceutical Ingredients) and also provides CDMO (Contract Development and Manufacturing Organisation) services as parties ( Torrent Pharma and J B Chemicals) said that their activities exhibit horizontal overlaps in certain relevant markets for the manufacturing and sale of FDFs in June, Torrent said it will acquire 46.39 per cent stake from promoters Tau Investment Holdings Pte Ltd, an affiliate of global investment firm KKR, for about Rs 11,917 crore. It would additionally buy another 2.80 per cent from certain employees of JB Chemicals at the same acquisition price of Rs 1,600 per share (totaling Rs 719 crore).Post this, it would make an open offer for buying 26 per cent from open market, as per listing norms, at a price of Rs 1,639.18 per share (totaling Rs 6,842.8 crore).This will be the second biggest deal in the pharma sector ever, behind Sun Pharmaceutical Industries ' 2015 acquisition of Ranbaxy Laboratories. Post share purchase, JB Pharma will merge into 2020, KKR had bought a 65 per cent stake in JB Chemicals & Pharmaceuticals. In March this year, KKR divested a 5.8 per cent stake in JB Pharma for Rs 1,460 crore through open market in 1976, JB Pharma produces a range of pharmaceuticals in areas such as gastroenterology, dermatology and diabetes, Pharma, with annual revenues of more than Rs 11,500 crore, is the flagship company of the Torrent Group, with group revenues of Rs 45,000 April 2014, Sun Pharma had announced it would acquire troubled rival Ranbaxy in an all-stock transaction worth USD 4 billion that includes USD 800 million debt. The merger was 'consummated' following receipt of requisite approvals a year later in March another big deal, Mankind Pharma last year completed the transaction to acquire Bharat Serums and Vaccines for a consideration of Rs 13,768 crore.


Mint
30-06-2025
- Business
- Mint
Torrent Pharma not planning to make leadership changes after buying JB Pharma
Ahmedabad-based drugmaker Torrent Pharmaceuticals will not to make leadership changes at JB Chemicals and Pharmaceuticals, its management told investors in a call on Monday, a day after the announcement of its nearly ₹ 19,500-crore deal to acquire a controlling stake. Torrent said on Sunday that it would acquire a controlling stake in JB Pharma from global investment firm KKR, at an equity value of ₹ 25,689 crore. The deal will be followed by a merger of the two entities. The deal is expected to be completed in 15-18 months, and is likely to be funded through debt. 'At this stage, all we can share is that there is no intention to change anything in business as usual,' Aman Mehta, whole time director and managing director-designate at Torrent Pharmaceuticals, told investors when asked about leadership plans for JB Pharma. 'In terms of how we plan to integrate, we do recognize that the scale of this acquisition is far larger than our past ones. So it's not really comparable in that sense,' said Mehta. '...directionally, even in this case, it should be fairly similar to what we've seen in the past three deals,' he added. In the last five years, under the leadership of chief execuitve officer Nikhil Chopra, JB Pharma has emerged as one of the fastest growing pharma companies in India. Chopra, who was previously executive vice president—India business at Cipla, was brought on after investment firm KKR acquired a 54% stake in JB Pharma from the promoters, the Mody family, in July 2020 for about ₹ 3,100 crore, or ₹ 745 per share. Torrent's management declined to share specifics on future plans for the deal. The transaction is expected to be EPS (earnings per share) accretive by FY28, which would be the first year of the merged entity, said Sudhir Menon, chief financial officer at Torrent Pharma. Torrent is acquiring a 46.39% equity stake (on a fully diluted basis) in JB Pharma through a share purchase agreement for ₹ 11,917 crore at ₹ 1,600 per share, followed by a mandatory open offer to acquire up to 26% of the company's shares from public shareholders, at an open offer price of ₹ 1,639.18 per share, amounting to about ₹ 6,843 crore. Torrent also intends to acquire up to 2.80% of equity shares from certain employees of JB Pharma at the same share price as KKR, that is ₹ 1,600 per share, totalling about ₹ 719 crore. The acquisition will be followed by a merger between Torrent and JB Pharma through a scheme of arrangement, subject to necessary regulatory approvals. The acquisition will provide Torrent access to a fast-growing India franchise, with JB's leading brands in the chronic segment, and entry into untapped therapeutic areas like ophthalmology, and IVF. Following the deal, Torrent moves up the rank in the Indian drug market from the 7th position to 5th position. 'If the double digit growth sustains in merged entity, we think Torrent can become #4 ranked company in India in 3-4 years,' said brokerage Nuvama in a note. The deal also facilitates Torrent's entry into the contract development and manufacturing organization segment. It will also aid consolidation in key international markets. 'Although JB Chemicals has been operating efficiently under KKR's ownership, the merger is expected to unlock further value through the reduction of corporate costs and potential synergies in the field force, particularly as both companies have a strong presence in cardiology and gastroenterology therapies,' analysts at JM Financial said in a note. Torrent is likely to finance the deal through debt. 'At the outset, the leverage required for this transaction is looking quite comfortable from a servicing point of view. However, depending on the MTO (mandatory tender offer) outcome, which is a variability which is there, we will see if equity mix is required at all,' Menon told investors.


Time of India
30-06-2025
- Business
- Time of India
Torrent Pharma set to finalise JB Chemicals buyout in 15-18 months
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Ahmedabad-based drug maker Torrent Pharmaceuticals will complete its acquisition of JB Chemicals & Pharmaceuticals in the next 15-18 months subject to key regulatory approvals, a top company executive said in an investor call on Monday.'CCI ( Competition Commission of India ) approval will take 4-5 months and is expected by mid-December. Then there will be a one-month process to complete the minimum tender offer and consummate the transaction. Then the merger process starts that will take about 12 months,' said Sudhir Menon, CFO and executive director – finance, Torrent acquisition will be mainly debt funded, he said. 'The leverage required for the transaction is looking quite comfortable from a servicing point of view,' said Menon. 'However, we will see if equity mix is required at all.' Torrent is looking at a cost of borrowing of less than 8%.It plans to repay its debt within two and a half years of taking control of JB Chemicals.'If FY27 I am between 1.8x to 2.8x (net debt/EBITDA), let's take a mid-number of 2.5, then I should be able to repay the debt in maybe 2.5 years' time. It's quite comfortable for me,' said also added there is no immediate need to tap its approved QIP company will acquire 46.39% equity stake (on a fully diluted basis) of JB Pharma through a share purchase agreement for Rs 11,917 crores at Rs 1,600 per will trigger a mandatory open offer to acquire up to 26% of JB Pharma shares from public shareholders at an open offer price of Rs 1,639.18 per share, according to an investor presentation from has also expressed its intent to acquire up to 2.80% of equity shares from employees of JB Chemicals at transaction Chemicals shareholders will get 51 equity shares of Torrent for every 100 equity shares of JB Chemicals. Aman Mehta , whole time director, Torrent Pharma, said the acquisition is aligned to the company's strategic vision of deepening its presence in the Indian pharmaceutical market 'It expands our presence in some high growth segments and gives us a resilient platform to drive long-term growth,' he told analysts on Monday.'Additionally, it provides us with a new avenue of growth in the CDMO segment . We find this space to be attractive, and JB has a strong right to win with a successful track record in this space,' he said the US, Russia and South Africa markets will be of particular interest in the CDMO space. 'They are the most important regions outside India in the CDMO segment where we intend to have a greater presence through the acquisition,' he the India business, JB Chemical's strong capability in areas such as cardiac and gastroenterology will be complementary therapies to Torrent, while the deal also opens new therapy segments for Torrent in areas such as ophthalmology, IVF and nephrology.'The enhanced prescription footprint is positive for our overall reach and will help enhance trade visibility,' said far as impact on leadership and people post the merger, Menon said a proper retention plan will be put in place for key people. 'I believe continuity will exist,' he said.


Business Standard
30-06-2025
- Business
- Business Standard
Torrent Pharma gains after inking pact to acquire majority stake in JB Chemicals & Pharma
Torrent Pharmaceuticals added 2.22% to Rs 3,418.60 after the company entered into definitive agreement with KKR to acquire controlling stake in JB Chemicals and Pharmaceuticals at an equity valuation of Rs 25,689 crore. Shares of JB Chemicals & Pharmceuticals declined 6.63% to Rs 1,680.05 on the BSE. The acquisition would provide access to a fast growing India franchise, with leading brands in the chronic segment, and entry into untapped therapeutic areas like ophthalmology. It strengthens market share in the IPM for Torrent and offers operational synergies across multiple business functions. The deal also supports platform diversification through entry into the CDMO segment with long-term potential. Additionally, it facilitates consolidation in key international markets and greater ability to scale up. The transaction will be executed in two phases. In first phase, the company will acquire 7,44,81,519 equity shares, representing a 46.39% stake at Rs 1,600 per share, for a total consideration of Rs 11,917 crore from the promoter seller, KKR. Additionally, the company plans to acquire up to 44,99,782 shares, representing a 2.80% stake at the same price of Rs 1,600 per share, from certain employees of JB Chemicals & Pharmaceuticals. Furthermore, the company will launch an open offer to acquire 4,17,45,264 equity shares or 26% stake at Rs 1,639.18 per share from public shareholders of JB Chemicals & Pharmaceuticals. In second phase, the company will merge with JB Pharma through a scheme of arrangement. As per the approved by the board of directors of both companies, shareholders of JB Pharma will receive 51 shares of Torrent for every 100 shares held in JB Pharma upon completion of the merger. Samir Mehta executive chairman, Torrent, commented: We are pleased to have on board the JB Pharma heritage and build on the platform for the future. Torrents deep India presence and JB Pharmas 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. Gaurav Trehan, co-head of Asia Pacific and head of Asia Pacific Private Equity, KKR, and CEO of KKR India, said: JB Pharmas transformation under our stewardship is a testament to KKRs ability to scale high-quality companies. We are proud to have collaborated with JB Pharmas management team, led by Nikhil Chopra, to bring the breadth of KKRs global experience and operational expertise to support the companys organic and inorganic growth, and help JB Pharma become one of Indias fastest growing branded pharmaceutical companies. We believe the company is well-positioned for continued growth ahead and wish the team every success in its next chapter with Torrent. Torrent Pharma is the flagship company of the Torrent Group. It is amongst the Top 5 in the therapeutics segments of Cardiovascular (CV), Gastro Intestinal (GI), Central Nervous System (CNS) and Cosmo-Dermatology. It has 8 manufacturing facilities, of which 5 are USFDA approved. J.B. Chemicals & Pharmaceuticals is a public listed company primarily engaged in the business of manufacturing and marketing of diverse range of pharmaceutical formulations.


Mint
30-06-2025
- Business
- Mint
Torrent expects JB Pharma deal to reach completion over 15-18 months
New Delhi, Jun 30 (PTI) Torrent Pharmaceuticals expects the ₹ 19,500-crore deal to acquire majority stake in Mumbai-based J B Chemicals and Pharmaceuticals to complete over the next 15-18 months. As per the deal, which is the second largest in the domestic pharmaceutical space behind Sun Pharma's 2015 acquisition of Ranbaxy, Torrent will acquire 46.39 per cent stake from promoters Tau Investment Holdings Pte Ltd (a unit of global investment firm) for about ₹ 11,917 crore. It would additionally buy another 2.80 per cent from certain employees of JB Chemicals at the same acquisition price of ₹ 1,600 per share (totaling ₹ 719 crore). Post this, it would make an open offer for buying 26 per cent from open market, as per listing norms, at a price of ₹ 1,639.18 per share (totaling ₹ 6,842.8 crore). "Overall timeline for completion of the transaction: 15-18 months," Torrent Pharmaceuticals said in an investor presentation on the BSE. The company would mainly need approvals for the deal from the Competition Commission of India (CCI), stock exchanges and Securities and Exchange Board of India (SEBI). Post share purchase, JB Pharma will merge into Torrent. Every shareholder holding 100 shares in JB Pharma shall receive 51 shares of Torrent. Strategically, the deal gives Torrent access to JB Pharma's leading brands in the chronic segment and opens up untapped therapeutic areas like ophthalmology. Besides creating operational synergies, the deal is expected to strengthen Torrent's market share in the Indian pharmaceutical market, and diversify its platform into contract development and manufacturing. The acquisition will strengthen Torrent's market share in the IPM as well as give entry into the CDMO segment with long-term potential. It would also have consolidation in key international markets and give greater ability to scale up. Torrent-JB Pharma deal is the second largest so far in the Indian pharma space. In April, 2014, Sun Pharma had announced it would acquire troubled rival Ranbaxy in an all-stock transaction worth USD 4-billion that includes USD 800 million debt. The merger was 'consummated' following receipt of requisite approvals a year later in March 2015. In another big deal, Mankind Pharma last year completed the transaction to acquire Bharat Serums and Vaccines Ltd (BSV), for a consideration of ₹ 13,768 crore. In July last year, Mankind had announced that it will acquire a 100 per cent stake in BSV.