Torrent Pharma buys Elder's India formulations biz for $324 million
MUMBAI (Reuters) - India's Torrent Pharmaceuticals Ltd (TORP.NS) agreed to buy branded formulations business of rival Elder Pharmaceuticals Ltd (ELDP.NS) in India and Nepal for about 20 billion rupees ($324.1 million) to boost its market share.
Elder, which will use the deal proceeds to pare its debt, will continue to manufacture and supply products at existing facilities for Torrent for three years, Torrent said.
Elder's India formulations business comprises a portfolio of 30 brands including in the women's healthcare, pain management, wound care and nutraceuticals therapeutic segments.
Torrent will fund the acquisition through a mix of internal accruals and bank borrowings, the company said.
Elder said in July its board had approved restructuring of the company's business by either raising capital, hiving off assets or through other strategic options to reduce debt.
Sanofi SA's (SASY.PA) India unit and Carlyle Group (CG.O) were also in talks with Elder to buy the formulations business, sources had told Reuters.
Elder shares lost early gains and fell as much as 11.7 percent 0833 GMT in the Mumbai market .NSEI that was down about 1 percent. Torrent shares fell as much as 8.5 percent after rising earlier in the day.
(Reporting by Indulal PM; Editing by Gopakumar Warrier)