Reckitt Benckiser emerged successful in race to buy Pars in spite of 4 global drugmakers submit bids for India’s Paras Pharma buy.
Reckitt Benckiser Group plc (RB) today announces that it has agreed to buy Paras Pharmaceuticals Limited (Paras) forINR 32.6 billion (Indian Rupees) (approximately GBP 460 million) from the current shareholders, including the Patel family and Actis, the emerging markets private equity investor. RB will finance the transaction from existing facilities.
Paras is a privately-owned Indian company with a portfolio of leading Indian over the counter Health and Personal Care brands including:
Moov, the No 2 topical analgesic pain ointment,
D’Cold, the No 2 cold & flu remedy,
Dermicool, the No 2 for prickly heat,
Krack, the No 1 medicated skin treatment for cracked heels and
Itch Guard and Ring Guard anti fungal creams.
In addition, Paras has a personal care business led by Set Wet, a leading hair gel and deodorant brand. In the fiscal year ending March 2010, Paras generated net sales of INR 4,014 million, representing a mid-teens average growth rate over the last four years, and operating EBITDA for the same year of INR 1,083 million (approximately GBP 56 million and GBP 15 million respectively). The company has a brand new state of the art and GMP compliant manufacturing plant located at Baddi in Northern India, which employs around 700 people.
Commenting on the acquisition, Reckitt Benckiser CEO, Bart Becht, says, “The acquisition of Paras is another step forward in RB’s growth strategy in consumer health care. 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.”
“We believe the Paras business has not only extremely good growth potential, when supported by RB’s investment and innovation strength, we also expect to realize material synergies as a result of the integration of Paras into Reckitt Benckiser.”
“The growth potential of the business, the creation of a material health care business in India’s large and growing health care market and the global synergies available make Paras an exciting addition to our portfolio and attractive opportunity for our shareholders.”
RB was advised by JPMorgan. Actis and the other Paras shareholders were advised by Morgan Stanley.
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