Comments
Aurobindo Pharma has reached a definitive agreement to sell Natrol LLC., a wholly-owned subsidiary of Aurobindo Pharma USA Inc., to New Mountain Capital and its affiliate Jarrow Formulas Inc.
The all-cash transaction is valued at $550 million (₹4,048 crore). Subject to customary closing conditions and regulatory approvals, the transaction is expected to be done by January. Natrol’s annual sales for the 12 months ended March 31, 2020 were approximately $157 million.
‘Growing on all fronts’
“Following the acquisition of the assets of Natrol by Aurobindo Pharma in December 2014, Natrol has been a consistently profitable business, growing on all fronts under Aurobindo’s ownership,” the Hyderabad-based company said in a release on Monday.
Commenting on the development, N Govindarajan, Managing Director, Aurobindo Pharma, said: “Aurobindo is committed to evaluating and concluding strategic options towards focussed portfolio enhancement with the ultimate objective of enhancing stakeholder values. We are pleased to sell the Natrol business to an outstanding private equity player, who could focus additional resources to grow Natrol, its products and brands further.’’
Also read: DBT-BIRAC to support Aurobindo Pharma in vaccine development
“Proceeds from Natrol’s divestiture will be used to reduce debt and for other new strategic initiatives,’’ he added.
Aurobindo’s scrip ended at ₹784.65 on the BSE on Monday, a 0.20 per cent gain over its previous close.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.