Torrent Pharma in advanced talks to buy Elder Pharma’s local business for Rs2,000 crore
22 Nov 2013
Torrent Pharmaceuticals is in advanced stages of talks to acquire Elder Pharma's local business for around Rs2,000-crore, The Times Of India today reported, citing sources close to the development.
Elder Pharma's domestic business had a turnover of Rs550 crore in 2012-13.
A completed deal would help Torrent build a strong portfolio of multivitamin and nutrition products, an area the Ahmedabad-based company is lagging as compared to some other big pharma players, the report added.
For Mumbai-based Elder Pharma, the deal would enable it to reduce its debt of Rs1,300. In July its board had approved a restructuring plan to cut the debt (See: Elder Pharma's board approves restructuring to reduce Rs1,300 crore debt).
The restructuring involved either raising of capital, hiving off of assets or other strategic options. The company later decided to sell its domestic operations and appointed advisors to conduct an auction.
Several reports had earlier said the sale had attracted bids from French pharmaceutical giant Sanofi, US-based Pfizer and Britain's GlaxoSmithKline (GSK).
Founded in 1989, Elder Pharma is ranked as the 27th largest pharmaceutical company and rated as the third fastest-growing company, by revenue, in the pharmaceutical industry in India.
The company manufactures and markets prescription pharmaceutical brands, surgical and medical devices.
Shelcal, Elder's No.1 brand, is one of the top calcium brands brands in the Indian Pharmaceutical industry.
