Ahmedabad-based Torrent Pharma will enhance its presence in the dermatology segment with the acquisition of Curatio Healthcare for Rs 2,000 crore.
The considerations will include Rs 115 crore on the date of signing and an enterprise value of Rs 1,885 crore. "The acquisition offers Torrent the opportunity to enhance its presence in dermatology with a differentiated portfolio and is a strong strategic fit," the company wrote in an exchange filing.
Curatio has a portfolio of over 50 brands which are marketed over India, Nepal, Sri Lanka, and Philippines. Some of the company's popular brands include Tedibar, Atogla, B4 Nappi, and Permite. Year-to-Date, Curatio's sales have growh 25 percent year-on-year and is expected to cross Rs 275 crore in revenue in the current financial year. Curatio's top 10 brands account for nearly 75 percent of the total revenue.
Torrent Pharma will also add a field force of 600 Medical Representatives and a distribution network of 900 stockists post the transaction. Dermatology accounts for 82 percent of Curatio's total revenue.
"The acquisition offers Torrent the opportunity to enhance its presence in dermatology with a differentiated portfolio and is a strong strategic fit," Torrent Pharma Director Aman Mehta was quoted as saying in the exchange filing.
Curatio's promoters believe that Torrent is best suited to catapult the business forward.
The transaction also positions Torrent Pharma among the top 10 players in the Dermatology segment and is likely to be completed over the next month, compared to closing conditions.
Earlier this year, Torrent Pharma had discontinued its liquids business in the US, due to changing market conditions. The company achieved revenue of Rs 8,508 crore in FY22 with net-debt-to-EBITDA declining to 1.3x from 1.6x in FY21. Torrent is present in over 40 countries and has seven manufacturing facilities.
Shares of Torrent Pharma ended 1.5 percent higher at Rs 1,534.95 and are flat this year.
First Published: Sept 27, 2022 5:07 PM IST
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