Torrent Pharma acquires Elder’s Indian branded formulation business for Rs2,004 crore
Moneylife Digital Team 13 December 2013
Torrent strengthened its position in Indian market by acquiring Elder’s Pharmaceutical women healthcare and pain management business
 
Torrent Pharmaceuticals Ltd (Torrent) have entered into a definitive binding agreement with Elder Pharmaceuticals Ltd (Elder) to acquire Elder’s branded formulation business in India and Nepal for Rs2,004 crore. 
 
“This pathbreaking domestic consolidation by Torrent addresses our recent challenges and will significantly help Elder leverage its balance sheet.” Said, Elder chief executive officer and managing director, Alok Saxena "The transaction is a strategic fit for Torrent and will strengthen its core prescription-based business. This acquisition strengthens our position in the women healthcare, pain management & vitamins, nutrition segments by enhancing and accelerating market access. It is also expected to enable cost & revenue synergies in Torrent's domestic formulations business," said Torrent Group chairman Sudhir Mehta.
 
Elder's existing brand equity in the areas of women healthcare and pain management will help Torrent strengthen its position in the Indian market expanding into these fast growing areas, said Torrent in their filing with stock exchanges.
 
Torrent would fund the acquisition through a mix of internal accruals and bank borrowings. Under the proposed transaction, Elder will continue to manufacture & supply the products at its existing manufacturing facilities for Torrent for a period of three years.  Torrent said, the transaction has been approved by the boards of both the companies and is subject to approval by shareholders and other necessary regulatory nods. The deal is expected to close in the first half of 2014.
 
On Friday, Share prices of Torrent Pharmaceuticals Ltd closed 4.04% down at Rs479.50 on BSE. Elder Pharmaceuticals share prices closed 8.17% down at Rs298.30 on BSE, While benchmark S&P BSE Sensex closed 210 points down at 20,715.
 
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