Global investment firm KKR on Thursday announced that it has entered into an agreement to purchase a controlling stake in J B Chemicals & Pharmaceuticals (JBCPL), one of the leading Indian pharmaceutical companies specialising in branded formulations.

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KKR will acquire its stake from the founding Mody family at a price of Rs 745 per share and make an open offer for an additional 26 percent of the company.

J B Chemicals’ portfolio includes four flagship brands in India -- Cilacar, Metrogyl, Nicardia and Rantac.

The company currently exports its branded formulations to more than 40 countries across the world.

JB Chemicals’ contract manufacturing capabilities will allow it to partner with large, international brands to develop a diverse range of innovative specialty products, including tablets, injectables, creams and ointments, lozenges, herbal liquids and capsules, a joint statement said.

JB Mody, founder, chairman and managing director of JB Chemicals, said, “We are thrilled that KKR – with its deep knowledge of the pharmaceutical industry and experience in investing in the sector, as well as its extensive investments in India – will take our mission forward and build on the foundation of core values that our family has instilled in this company. This will also create growth opportunities for our people to progress.”

Sanjay Nayar, partner and CEO of KKR India, said, “We are pleased that the promoters of JB Chemicals have selected us to take over their rich legacy and to help the company continue its expansion, which is clearly driven by its diversified product portfolio and state-of-the-art manufacturing capabilities.”

KKR has a long track record of supporting companies in the pharmaceutical and healthcare sectors globally. 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 has also previously invested in Gland Pharma, an Indian pure-play generic injectable pharmaceutical products company that was the first company in India to get US Food and Drug Administration approval for pharmaceutical liquid injectable products.

KKR will fund this investment from Asian Fund III. The transaction is subject to regulatory and other customary approvals.

First Published:Jul 2, 2020 9:18 PM IST