Mumbai: In one of the largest pharma deals over the last two years, Ahmedabad-based Torrent Pharmaceuticals is acquiring dermatology firm Curatio Healthcare for Rs 2,000 crore. The transaction, also one of the most expensive in recent times, is nearly 9x the target company’s sales.
Other large deals over the last two years include Mankind’s acquisition of Panacea’s domestic formulation brands for Rs 1,872 crore, Dr Reddy’s buying part of Wockhardt’s branded business for Rs 1,850 crore, and PE firm KKR’s Rs 3,100-crore buyout of JB Chemicals.
Chennai-based Curatio has a strong presence in the cosmetic dermatology with a portfolio of over 50 brands, and a revenue of Rs 224 crore for FY22, a company statement said. Its portfolio consists of leading brands such as Tedibar, Atogla, Spoo, B4 Nappi and Permite, which are ranked among the top five in their markets. The consideration includes Rs 115 crore of cash and cash equivalents in the acquired business, indicating an enterprise value of Rs 1,885 crore, the release adds.
Torrent director Aman Mehta said, “The acquisition offers Torrent the opportunity to enhance its presence in dermatology with a differentiated portfolio and is a strong strategic fit. Curatio has built a commendable set of high market share brands in cosmetic and paediatric dermatology that we look forward to adding to our product offerings.”
The acquisition will be funded with 80-85% of debt, and the balance through internal accruals, the company said. “There is headroom for margin expansion to bring it up to base business levels,” a Torrent spokesperson told TOI.
A few years ago, Torrent acquired Mumbai-based Unichem and Elder Pharma. With this acquisition, Torrent Pharma will add a field force of 600 medical representatives and a distribution network of 900 stockists.
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