Torrent Pharmaceuticals has announced acquisition of a controlling stake in JB Chemicals & Pharmaceuticals Ltd from New York-based global investment firm KKR, with plans to merge the two entities going forward.
The company has entered into a definitive agreement with KKR, which holds around 47.84% shares in JB Pharma (during the quarter ending March, 2025) through Tau Investment Holdings Pte Ltd, for acquisition
The acquisition, at an equity valuation of Rs. 25,689 crore on fully diluted basis for JB Pharma, will be executed in two phases and is a step towards Torrent's ambition to create a future-ready, diversified healthcare platform combining a deep chronic segment heritage with emerging international contract development and manufacturing organisation (CDMO) capabilities, said the company.
• The company will acquire 46.39% of equity shares from the promoter Tau Investment Holdings, for a cash consideration of Rs. 11,917 crores (Rs. 1,600 per share), followed by a mandator open offer to acquire up to 26% of the shares from public shareholders at an open offer price of Rs. 1,639.8 per share.
• Besides, Torrent has also expressed its intent to acquire up to 2.80% of equity shares from certain employees of JB Pharma at the same price per share as KKR.
As per the approval given by the board of directors of both companies, upon merger of JB Pharma with Torrent, every shareholder holding 100 shares in JB Pharma shall receive 51 shares of Torrent.
"We are pleased to have on board the JB Pharma heritage and build on the platform for the future. 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," said Samir Mehta, executive chairman, Torrent. The CDMO platform provides a new long-term avenue of growth for Torrent, he added.
Nikhil Chopra, chief executive officer and whole time director of JB Pharma, said, “Over the past five years, JB Pharma has emerged as one of India's fastest growing pharmaceutical players, owing to KKR's strategic guidance, stewardship of our independent directors and a focused strategic and executional excellence by the management team.""
""We have built a strong foundation to deliver market-leading growth, as well as consistent improvement in profitability in the medium and long term. As we now enter a new chapter alongside Torrent Pharmaceuticals, we are confident that the combined strengths of our organizations will unlock greater opportunities to enhance healthcare access across our markets,” he added.
• Torrent Pharma, with annual revenues exceeding Rs. 11,500 crore, is set to grow further through the acquisition of JB Pharma.
• JB Pharma reported a turnover of Rs. 3,918 crore and a net worth of Rs. 3,433.32 crore as of March 31, 2025.
• Established on December 18, 1976, JB Pharma has a strong international presence in India, Russia, Dubai, South Africa, and the Philippines.
• In India, JB Pharma has six brands among the top 300 IPM brands in the country. The company exports its finished formulations to over 40 countries including the USA, and is also a leading CDMO player in the segment of medicated lozenges.
• It has eight state of the art manufacturing facilities in India including a dedicated manufacturing facility for lozenges.
• The manufacturing facilities are certified by leading regulators across the world, said the company.
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