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KKR to acquire controlling stake in JB Chemicals and Pharmaceuticals

KKR will make the investment through its subsidiaries, Tau Investments Holdings, Tau Holdco, and KKR Asia III Fund Investments

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KKR has announced that it will buy a majority stake in JB Chemicals and Pharmaceuticals from its promoters and then make an open offer to acquire 26 per cent more in the company.

The private equity major has signed a definitive agreement to acquire stake from the Mody family at Rs 745 a share, it said in a statement.

KKR will make the investment through its subsidiaries, Tau Investments Holdings, Tau Holdco, and KKR Asia III Fund Investments.

“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,” said Sanjay Nayar, Partner and CEO, KKR India.

The KKR statement further said J B Chemicals is one of the leading pharma companies in India, supplying affordable, high-quality products in the 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, the statement said, adding it exports to over 40 countries.

KKR will be funding the investment from its Asian Fund III, it 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,” said J B Mody, Founder, Chairman and MD of JB Chemicals and Pharmaceuticals.

Avendus Capital served as the financial advisor to the company promoters, while ICICI Securities will be acting as the manager to the public offer.

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