KKR to acquire controlling stake in JB Chemicals for over $410 Million

KKR has agreed to purchase a controlling stake in JB Chemicals & Pharmaceuticals Ltd in its third private equity deal in India. This  deal with JB Chemicals has been in the news for the last one year. With this JB Chemicals has an opportunity to accelerate its growth and leverage its strengths to enter into new therapeutic areas.


The vision is to make an open offer to acquire 26 per cent more in the branded formulations company. The private equity major has signed a definitive agreement to acquire stake from the Mody family at Rs 745 a share, which is over 4 per cent higher than Thursday's close of Rs 715.40, it said in a statement. KKR has entered into a definitive agreement to purchase a "controlling stake" in the company, it said.



At present, JB has a market cap of Rs 5,740 crore. The stock has appreciated 60 per cent in the past three months in anticipation of a transaction.

The investment will be made through Tau Investment Holdings Pte, Tau Holdco Pte and KKR Asia III Fund Investments Pte. “We believe JB Chemicals has an opportunity to accelerate its growth and leverage its strengths to enter into new therapeutic areas,” KKR India partner and chief executive Sanjay Nayar said. “This investment underscores KKR’s ongoing commitment to India’s long-term economic prospects and the potential of its companies,” he added.