KKR to acquire controlling stake in JB Chemicals

Our Bureau Mumbai | Updated on July 02, 2020 Published on July 02, 2020

Global investment firm KKR has signed a definitive agreement to acquire a controlling stake in J.B. Chemicals & Pharmaceuticals Ltd for an undisclosed amount.

KKR will acquire stake from the founders, Mody family, at ₹745 per share and make an open offer for an additional 26 per cent of the company. Details of the open offer will be disclosed at the appropriate time, KKR said in a statement.

KKR will fund this investment from its Asian Fund III.

J.B. Chemicals, a company specialising in branded formulations, supplies products in cardiac, gastrointestinal and anti-infective therapeutic areas across the branded formulations market.

The company’s portfolio includes four flagship brands in India — Cilacar, Metrogyl, Nicardia and Rantac — and exports branded formulations to more than 40 countries.

“We believe J.B. Chemicals has an opportunity to accelerate its growth and leverage its strengths to enter into new therapeutic areas. We look forward to working with the management team to build on the company’s strong foundation, and believe this investment underscores KKR’s ongoing commitment to India’s long-term economic prospects and the potential of its companies,” Sanjay Nayar, Partner and CEO of KKR India, said.

Avendus Capital was the financial advisor to the promoters of J.B. Chemicals, and Platinum Partners (Mumbai) was the legal counsel. Moelis & Company was the financial advisor, EY as accounting and tax diligence advisor, and Shardul Amarchand Mangaldas & Co and Simpson Thacher & Bartlett were legal counsels to KKR.

ICICI Securities will be acting as the manager to the public offer, it added.

In India, KKR’s pharmaceutical and healthcare investments include Max Healthcare and Radiant Life Care, which collectively comprise the largest hospital network in North India. KKR had also invested in Gland Pharma, a pure-play generic injectable pharmaceutical products company.

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Published on July 02, 2020
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