Torrent Pharma Nears $2.4 Billion JB Chemicals Buyout Amid Financing Talks

New Delhi: Torrent Pharma is closing in on a $2.4 billion acquisition of JB Chemicals and Pharmaceuticals, marking its biggest deal yet. The Ahmedabad-based company is in advanced talks with private equity giant KKR, which currently holds a 47.84% stake in JB Chemicals through TAU Investment. The transaction includes an open offer for an additional 26% stake, potentially bringing Torrent’s total ownership to 73.84%.

If successful, the deal could cost Torrent up to Rs 20,734 crore, with Rs 13,434 crore allocated for KKR’s stake alone. Torrent is working with HSBC, Standard Chartered, and Barclays to secure $1.6 billion in financing for the purchase, likely backed by promoter guarantees or cash flows.

JB Chemicals, known for brands like Nicardia (hypertension) and Rantac (antiulcer), has seen a significant turnaround under CEO Nikhil Chopra. Its revenue grew 12% year-on-year to Rs 3,918 crore in FY25. The company also collaborates with Novartis on cardiovascular drugs and maintains strong CDMO alliances.

Torrent Pharma MD-designate Aman Mehta has set ambitious goals to secure a top-three position in the Indian market within five years, emphasizing acquisitions as a key growth strategy. This deal will bolster Torrent’s presence in the competitive branded generics sector and expand its CDMO capabilities.