KKR-controlled JB Chemicals & Pharmaceuticals Ltd has said it will acquire brands from Hyderabad-based Sanzyme Pvt Ltd for Rs 628 crore (around $84 million).
The buyout will mark JB Chemicals' entry into the probiotics, therapeutic nutraceuticals and reproductive health market, it said in a statement.
The acquisition will also make JB Chemicals among the top five probiotics players in the country, in a segment which is growing at around 12%-14%, it added.
The acquired brands have a pan-India presence and wide distribution reach of 300,000 chemists and 100,000 prescribers, it noted. These brands include Sporlac, Lobun (a probiotic used for delaying progression of chronic kidney disease) and Oxalo (an alternate risk-free therapy to decalcify kidney stones).
Nikhil Chopra, CEO and Whole-time Director, JB Chemicals, said the acquisition is in line with its objective of building big brands through category leaders.
“This acquisition also reinforces our strategic intent to evaluate opportunities to supplement our growth ambition in India. Overall, our objective is to deploy capital judiciously to enhance value for all stakeholders," he added.
Sanzyme, which has its origins in 1969, is focused on infertility management and specialty probiotic formulations business. According to its website, it has four decades of partnership with Japan's pharmaceuticals company Daiichi-Sankyo.
Investment bank o3 Capital was the exclusive advisor to Sanzyme for the transaction.
In 2020, KKR agreed to purchase a controlling stake in JB Chemicals in the private equity giant's second deal in the pharmaceuticals space in India.
JB Chemicals supplies products in the cardiac, gastrointestinal and anti-infective therapeutic areas across the branded formulations market. Besides India, it counts Russia and South Africa as its home markets. It also exports its finished formulations to over 30 countries including the US.
