The Global investment firm, KKR announced that it has entered into a definitive agreement to acquire 54% stake in J.B. Chemicals & Pharmaceuticals, a Mumbai- based drug manufacturing company. This controlling stake was bought by acquiring 41.7 million shares from the promoters at INR 3,100 crores and will trigger an open offer of an addition 26% stake in the company.
KKR outbid other private equity companies PAG, Bain Capital and Apax for this deal with J.B. Chemicals. The investment will be funded by KKR’s Asian Fund III containing USD 9.3 billion raised in 2017, Tau Investment Holdings Pte and Tau Holdco Pte and the transaction is subject to regulatory and other customary approvals.
J.B. Chemicals and pharmaceutical saw a 116% gain in shares in the past eight months after news of a buyout hit the market. The company’s profit shot up 40% and it saw a growth of 8% in revenues by the end of March 2020. The company exports its products to 40 countries and its manufacturing capabilities allow international partnerships to develops various products like tablets, injectables, creams and ointments, herbal liquids, capsules and lozenges. The company’s portfolio contains four flagship brands in India – Cilacar, Rantac, Nicardia, and Metrogyl. It is one of the leading pharmaceutical companies in India and has products across the branded formulations market in gastrointestinal, cardiac and anti-infective therapeutic areas and provides them at an affordable price without compromising on the quality. It has 108 brands in the domestic market and 22 therapeutic groups. This new agreement will allow J.B. Chemicals to venture into new therapeutic areas and will also allow J.B. Chemicals & Pharmaceuticals gain a stronger international presence through KKR partnerships and relations.