Torrent Pharmaceuticals Limited (“Torrent”) signed definitive agreements to acquire a controlling stake in J. B. Chemicals & Pharmaceuticals (“JB Pharma”) from global investment firm KKR. Torrent will follow the ₹25,689 crore acquisition with a merger of the two companies.
The strategic move marks a major milestone in Torrent’s ambition to build a diversified, future-ready healthcare platform. It combines Torrent’s strong position in chronic therapies with JB Pharma’s growing international CDMO (Contract Development and Manufacturing Organization) capabilities.
Transaction Structure: Two-Phase Execution
The deal will unfold in two key phases:
Initial Acquisition
Torrent will acquire a 46.39% equity stake (fully diluted basis) in JB Pharma from KKR for ₹11,917 crore, paying ₹1,600 per share under a Share Purchase Agreement (SPA).
Open Offer and Employee Share Buyout
Torrent will launch a mandatory open offer to acquire up to 26% of JB Pharma shares from public shareholders at ₹1,639.18 per share. The company has also indicated its intent to purchase up to 2.80% of shares held by JB Pharma employees. These will be bought at the same rate offered to KKR.
Merger Through Scheme of Arrangement
As reported by businesswire.com, following the stake acquisition, Torrent and JB Pharma will merge. As per the approved scheme, shareholders holding 100 shares of JB Pharma will receive 51 shares of Torrent.
Torrent Sees Strategic Fit and Growth Potential
Samir Mehta, Executive Chairman, Torrent Pharmaceuticals, said, “We are excited to welcome JB Pharma’s legacy and integrate its platform into our future growth journey. Our strong presence in the Indian pharma market, coupled with JB Pharma’s fast-growing domestic business and global CDMO capabilities, creates a compelling combination. This move aligns with our strategy to scale both revenue and profitability, while expanding our diversified global footprint.”
KKR Reflects on Successful Transformation
Gaurav Trehan, Co-Head of Asia Pacific and CEO of KKR India, highlighted, “JB Pharma’s transformation under our guidance reflects KKR’s strength in scaling high-quality businesses. Working alongside CEO Nikhil Chopra and the management team, we brought global expertise to drive organic and inorganic growth. JB Pharma is now one of India’s fastest growing branded pharma companies, and we are confident it is poised for continued success with Torrent.”
JB Pharma Looks Ahead with Confidence
Nikhil Chopra, CEO and Whole-Time Director, JB Pharma, commented, “Over the past five years, JB Pharma has evolved into one of the fastest-growing pharmaceutical players in India. With strategic inputs from KKR and the commitment of our leadership team, we achieved consistent profitability and robust growth. Joining forces with Torrent will further enhance our ability to deliver quality healthcare and expand our impact across markets.”
