A JB Chemicals factory in Gujarat in western India.
Courtesy of JB Chemicals
Torrent Pharmaceuticals Acquires JB Chemicals and Pharmaceuticals in $1.4 Billion Deal
Torrent Pharmaceuticals, led by billionaire brothers Sudhir and Samir Mehta, has announced the acquisition of JB Chemicals and Pharmaceuticals from KKR in a deal worth 119.1 billion rupees ($1.4 billion).
The transaction involves Torrent Pharma purchasing a 46.4% stake in JB Pharma at 1,600 rupees per share and acquiring up to 2.8% of shares from certain employees at the same price. Additionally, Torrent Pharma plans to make a tender offer for an additional 26% stake at 1,639.18 rupees per share, offering minority shareholders a premium. The total valuation of JB Pharma stands at 256.8 billion rupees ($3 billion).
“This strategic alignment furthers our goal of strengthening our presence in the Indian pharma market and building a larger diversified global footprint,” stated Samir Mehta, executive chairman of Torrent Pharma.
Upon completion of the merger, shareholders of JB Pharma will receive 51 shares of Torrent Pharma for every 100 shares held. The transaction is subject to regulatory approvals.
The acquisition provides Torrent Pharma with access to JB Pharma’s growing drug portfolio in India. Established in 1976, JB Pharma specializes in gastroenterology, hypertension, dermatology, and diabetes medications, exporting products to over 40 countries, including the U.S.
“We are confident that the combined strengths of our organizations will unlock greater opportunities to enhance healthcare access across our markets,” said Nikhil Chopra, CEO of JB Pharma.
The Mehta brothers, with an estimated net worth of $16.3 billion, are prominent figures on India’s wealthiest list. Their wealth primarily stems from Torrent Pharma, the flagship company of the $4.9 billion Torrent Group founded by their late father, Uttambhai Nathalal Mehta.
