KKR-backed JB Chemicals & Pharmaceuticals Ltd has agreed to acquire Glenmark Pharmaceuticals Ltd’s cardiac brand Razel for ₹313.7 crore in an all-cash transaction.
Razel is focused on the cardiac segment in India and Nepal with a market size of ₹2,444 crore, JB Chemicals said in an exchange filing. The deal, which will be funded through long term debt and internal accruals, mainly debt, is expected to close by this month-end, subject to customary closing formalities. The acquisition is synergistic with JB Chemicals’ cardiac segment, with growth potential, it said. “The products provide good operating leverage and are margin accretive, given its attractive margin profile,” it said.
It had earlier announced that it will buy brands from Hyderabad-based Sanzyme for ₹628 crore. For Glenmark, the divestment of Razel is in line with its strategy of focusing on other subcategories of the cardiovascular segment. The company will consolidate its position in core therapeutic areas of cardio‐metabolic, respiratory, dermatology and oncology.
KKR had agreed to acquire a controlling stake in the company in 2020. JB Chemicals supplies products in the cardiac, gastrointestinal and anti-infective therapeutic areas across the branded formulations market.
Besides India, JB Chemicals has also a strong presence in Russia and South Africa. It also exports its finished formulations to over 30 countries including the US.
Mumbai-based Glenmark has presence across specialty, generics and OTC businesses. It focuses on the key therapeutic areas of respiratory, dermatology and oncology. It has 10 manufacturing facilities across 4 continents and operations in over 80 countries.
