Multinational FMCG giant Reckitt Benckiser on Monday said it has agreed to fully acquire Ahmedabad-based Paras Pharmaceuticals for Rs 3,260 crore.
As part of the deal, the company will buy the 63 per cent stake of emerging markets private equity investor Actis, along with those of Sequoia Capital and the remaining shareholders, including Paras founder Girish Patel and his family, Reckitt Benckiser said in a statement.
The pharma giant will finance the transaction from existing facilities, it added.
Commenting on the acquisition, Reckitt Benckiser CEO Bart Becht said: "It creates a material health care business in India, one of the most promising health care markets in the world with the addition of a number of strong and leading brands."
* Paras Founder and Chairman Girish Patel said: "We have been on a rewarding journey with Actis and the quality of our partnership has proved to be the key reason for the recent success of the company. I believe Reckitt Benckiser will take our already strong brands to the next level."
Paras is a privately-owned firm with a portfolio of leading over-the-counter health brands, including Moov, DCold, Dermicool, Krack, Itch Guard and Ring Guard. It also has a personal care business led by Set Wet, a leading hair gel and deodorant brand.
In the financial year ending March 2010, Paras had net sales of Rs 401.4 crore with an operating EBITDA (Earning before interest, taxes, depreciation and amortisation) for the same year of Rs 108.3 crore, it added.
The company has a brand new state-of-the-art and GMP (Good manufacturing practice) compliant manufacturing plant located at Baddi in Northern India, which employs around 700 people.
While Reckitt Benckiser was advised by JPMorgan, Actis and the other Paras shareholders sought the services of Morgan Stanley for the purpose.
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