Torrent Pharma to Acquire Controlling Stake in J. B. Chemicals & Pharmaceuticals from KKR
#TorrentPharma #JBChemicals #Acquisition #KKR“This strategic alignment furthers our goal of strengthening our presence in the Indian pharma market, and building a larger diversified global presence.” - Samir Mehta, Executive Chairman, Torrent
July 2025 : Torrent Pharmaceuticals Limited and global investment firm KKR recently announced that Torrent has entered into definitive agreements to acquire a controlling stake in J. B. Chemicals and Pharmaceuticals from KKR. The transaction is based on an equity valuation of INR 25,689 crores (approximately USD 3.08 billion) on a fully diluted basis, and will be followed by a merger of the two entities. This strategic move marks a significant step in Torrent’s ambition to create a future-ready, diversified healthcare platform.
The acquisition will be executed in two distinct phases. Initially, Torrent will acquire a 46.39 percent equity stake (on a fully diluted basis) through a Share Purchase Agreement (SPA) for a consideration of INR 11,917 crores (INR 1,600 per share). This will be followed by a mandatory open offer to acquire up to an additional 26 percent of JB Pharma shares from public shareholders at an open offer price of INR 1,639.18 per share. Torrent has also expressed its intent to acquire up to 2.80 percent of equity shares from certain JB Pharma employees at the same price per share as KKR.
The second phase involves a merger between Torrent and JB Pharma through a scheme of arrangement. As per the approval given by the Boards of Directors of both companies, upon the merger of JB Pharma with Torrent, every shareholder holding 100 shares in JB Pharma will receive 51 shares of Torrent.
Samir Mehta, Executive Chairman, Torrent, commented: “We are pleased to have on board the JB Pharma heritage and build on the platform for the future. Torrent’s deep India presence and JB Pharma’s fast-growing India business, combined with the CDMO [Contract Development and Manufacturing Organization] and international footprint offers immense potential to scale both revenue and profitability. This strategic alignment furthers our goal of strengthening our presence in the Indian pharma market, and building a larger diversified global presence. Moreover, the CDMO platform provides a new long-term avenue of growth for Torrent.”
Gaurav Trehan, Co-Head of Asia Pacific and Head of Asia Pacific Private Equity, KKR, and CEO of KKR India, reflected on JB Pharma’s transformation: “JB Pharma’s transformation under our stewardship is a testament to KKR’s ability to scale high-quality companies. We are proud to have collaborated with JB Pharma’s management team, led by Nikhil Chopra, to bring the breadth of KKR’s global experience and operational expertise to support the company’s organic and inorganic growth, and help JB Pharma become one of India’s fastest growing branded pharmaceutical companies.”
Nikhil Chopra, Chief Executive Officer and Whole Time Director of JB Pharma, remarked: “Over the past five years, JB Pharma has emerged as one of India's fastest-growing pharmaceutical players. As we now enter a new chapter alongside Torrent Pharmaceuticals, we are confident that the combined strengths of our organizations will unlock greater opportunities to enhance healthcare access across our markets.”
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