Torrent to Acquire Controlling Stake in JB Chemicals
Deal News | Jun 30, 2025 | Zawya
In a strategic move to strengthen its presence in the Indian pharmaceutical market, Torrent Pharmaceuticals has announced its acquisition of a 46.39% controlling stake in JB Chemicals and Pharmaceuticals from New York-based investment firm KKR. The transaction values JB Pharma at approximately $3.01 billion on a fully diluted basis. Torrent will initially acquire the equity stake from KKR for 119.17 billion rupees before launching a mandatory open offer to public shareholders. The acquisition will eventually lead to a merger between Torrent and JB Pharma, with JB Pharma shareholders receiving 51 Torrent shares for every 100 JB Pharma shares held. This acquisition aligns with Torrent's goal of expanding its reach and enhancing its healthcare product offerings.
Sectors
- Pharmaceuticals
- Private Equity
Geography
- India – The primary market and operational base for both Torrent Pharmaceuticals and JB Chemicals, and the focus of business expansion.
- United States – KKR, the investment firm involved in the transaction, is based in New York, USA.
Industry
- Pharmaceuticals – The article discusses the acquisition of JB Chemicals and Pharmaceuticals by Torrent Pharmaceuticals, focusing on the pharmaceutical industry's market dynamics and strategic expansion.
- Private Equity – Mention of KKR, a private equity firm, selling its stake in JB Chemicals and Pharmaceuticals, highlighting the role of investment firms in corporate acquisitions.
Financials
- 256.89 billion rupees ($3.01 billion) – The total equity valuation of JB Pharma on a fully diluted basis.
- 119.17 billion rupees – The amount Torrent Pharmaceuticals will pay to acquire the initial stake from KKR.
- 1,639.18 rupees per share – The mandatory open offer price per JB Pharma share to public shareholders.
- 51:100 – Share exchange ratio for merger, with JB Pharma shareholders receiving 51 Torrent shares for every 100 JB Pharma shares.
- $1 = 85.4400 Indian rupees – Exchange rate mentioned to provide context on financial figures in the article.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Torrent Pharmaceuticals | Bidding Company | Company | An Indian pharmaceutical company acquiring a controlling stake in JB Chemicals to expand its presence in the market. |
| JB Chemicals and Pharmaceuticals | Target Company | Company | An Indian pharmaceutical company with a focus on chronic conditions and gastrointestinal medicines. |
| KKR | Selling Company | Company | A New York-based investment firm selling its stake in JB Chemicals and Pharmaceuticals. |
| Samir Mehta | Executive Chairman of Torrent | Person | Executive Chairman of Torrent Pharmaceuticals, a key figure in the acquisition strategy. |
| Nikhil Chopra | CEO of JB Pharma | Person | CEO of JB Chemicals and Pharmaceuticals, involved in the transaction announcement. |
| Abu Sultan, Mrinmay Dey | Reporters | Person | Reporters covering the transaction for Bengaluru. |
| Joe Bavier | Editor | Person | The editor responsible for the release of the news story. |