JB Chemical Factory in Gujarat, western India.
Provided by JB Chemicals
Torrent drugs, supported by Indian billionaires brothers Sudir and Samir Meta, have agreed to buy stakes in JB chemicals and drug private equity giant KKR in a deal valued at Rs 119.1 billion ($1.4 billion).
Torrent Pharma will purchase 46.4% shares of JB Pharma for Rs 1,600 per share, and buy up to 2.8% shares from certain employees at the same price. They then purchase an additional 26% shares at Rs 1,639.18 each, offering to pay a small premium to minority shareholders. The transaction is valued JB Pharma at Rs 256.8 billion ($3 billion), according to a joint announcement released on Sunday.
“This strategic integrity will encourage our goal of strengthening our presence in the Indian Pharma market and building a more diverse and global presence,” said Samir Mehta, Executive Chairman of Torrent Pharma, in a statement.
After completing the transaction, the companies will merge with all shareholders holding 100 shares of JB Pharma and receive 51 shares torrents. Transactions are subject to regulatory approval.
The deal grants access to torrent pharma to India’s fast-growing drug business. Founded in 1976, JB Pharma produces a variety of drugs for gastroenterology, hypertension, dermatology and diabetes, according to its website. We export products to over 40 countries, including the US
“We believe that entering a new chapter alongside Torrent Pharmaceuticals will unlock opportunities to enhance access to healthcare across the market, combining the strengths of the organization,” says Nikhil Chopra, CEO of JB Pharma.
According to the richest list of India’s 100, released last October by Forbes Asia, the Mehta brothers are India’s wealthiest with an estimated net worth of $16.3 billion. The majority of their wealth comes from Trent Pharma, the leading company of the $4.9 billion (revenue) Torrent Group. The 64-year-old company was founded by his late father, Uttanbai Natal Mehata, and former salesman of Swiss Pharma giant Sandoz.
