Torrent Pharma's Bold Move: Acquires Majority Stake in JB Chemicals

Torrent Pharmaceuticals, a company renowned for its strategic acquisitions, has made headlines with the announcement of a significant acquisition deal. They have agreed to acquire a 46.39% stake in JB Chemicals & Pharmaceuticals from KKR for INR 11,917 crore. This acquisition, announced on a Sunday, positions Torrent to assume control over JB Chemicals in what will be a cash transaction valued at INR 1,600 per share—a considerable discount against the prior market rate of INR 1,792 per share, although shares have since declined to INR 1,677. The deal values JB Chemicals at 33 times its projected earnings for the upcoming year, a premium that underscores the growth expectations for the firm. In addition to the primary transaction, Torrent will acquire Employee Stock Ownership Plans (ESOPs) at the same INR 1,600 per share valuation and will launch an open offer in compliance with takeover regulations to acquire an additional 26% shareholding at INR 1,639 per share. This comprehensive acquisition strategy could result in a total cash expenditure nearing INR 19,000 crore, assuming full acceptance of the open offer. The deal reflects Torrent's determination to expand its footprint and leverage strategic synergies with JB Chemicals.