Mumbai-based JB Chemicals & Pharmaceuticals Ltd (JBCPL) on Tuesday said it it has entered into an agreement to sell its over-the-counter business in Russia and CIS countries to
Johnson & Johnson subsidiary Cilag GmbH for a consideration of Rs 938.51 crore.
In a filing to the Bombay Stock Exchange, JBCPL said its board, at a meeting held on Monday, also approved selling the worldwide rights and registrations for three of its OTC brands - Doktor Mom, Rinza and Fitovit - for an additional sum of just over Rs 6 crore.
"The Russia/CIS (Commonwealth of Independent States) OTC business is being sold as a going concern on a slump sale basis, including trademarks, brand, patents, registrations and domain names," the filing said.
The sale will also include the transfer of the employees of the Russia/CIS OTC business it added.
Commenting on the sale, JB Chemicals & Pharmaceuticals Ltd (JBCPL) Chairman J B Mody said: "The disinvestment will provide JBCPL with the financial flexibility to pursue new growth opportunities in India and other focus markets. We are confident that Johnson & Johnson will take out OTC business in Russia/CIS to even greater heights."
For the year ended March 31, the company's profit stood at Rs 139.32 crore, against Rs 118.75 crore in the previous financial year. Net sales for FY11 amounted to Rs 871.68 crore, against Rs 740.94 crore in FY10.
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