Ahmedabad-based Torrent Pharmaceuticals on 13 December 2013 agreed to buy Mumbai-based Elder Pharmaceuticals’ branded domestic formulations business in India and Nepal for 2004 crore rupees. The transaction has been approved by the boards of directors of both the companies, and was expected to close in the first half of 2014.
Elder’s India business comprises a portfolio of 30 brands, including market leading brands in the women’s healthcare, pain management, wound care and nutraceuticals therapeutic segments. The brands include Shelcal, Chymoral, Eldervit, Formic and Carnisure.
Torrent, with a turnover 3200 crore rupees, will fund the acquisition through a mix of internal accruals and bank borrowings.
Under the proposed transaction, Elder, which has six manufacturing facilities, will continue to manufacture and supply the products at its existing facilities for Torrent for three years. Torrent’s plants at Indrad, Baddi and Sikkim make formulations and bulk drugs.
The deal would help Elder Pharmaceuticals address its recent challenges and will significantly help Elder de-leverage its balance sheet. Moreover it will allow Elder reorient its focus and grow its in-licensing, anti-infectives and exports business.
Torrent Pharmaceuticals was founded in late 1960s in Ahmedabad by U N Mehta. It’s Chairman and CEO is Sudhir Mehta.
Elder Pharmaceuticals was founded in 1989 in Mumbai. It’s Chairman and Managing Director is Jagdish Saxena.
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