The acquisition will mark J B Chemicals' entry into probiotics, therapeutic nutraceuticals and reproductive health market with multiple set of brands. The transaction is valued at Rs 628 crore and is expected to be completed in the next two weeks subject to customary closing formalities.

J B Chemicals said it will be amongst the top five probiotics players in the country, in a segment which is growing at around 12%-14%. The category creates synergies with its strong prescriber base in gastroenterology and nephrology segments. The acquired brands have a pan-India presence and wide distribution reach of 300,000 chemists and 100,000 prescribers. Following the acquisition, J B Chemicals said that the products will derive significant visibility by leveraging its distribution network across the country.

Nikhil Chopra, CEO & whole-time director of J.B. Chemicals & Pharmaceuticals said, “We are glad to announce our first acquisition which expands our presence into new Therapeutic areas and also increases the addressable opportunity in the India Pharma market. This is in line with our stated objective of building big brands through category leaders. Sanzyme has been a pioneer in the probiotics segment and we wish to build further on this legacy.”

He further said, “This acquisition also reinforces our strategic intent to evaluate opportunities to supplement our growth ambition in India. Overall, our objective is to deploy capital judiciously to enhance value for all stakeholders.”

J.B. Chemicals & Pharmaceuticals is one of the fastest growing pharmaceutical companies in India and a leading player in the hypertension segment. Besides its strong India presence, which accounts for majority of its revenue, its other two home markets are Russia and South Africa.

On a consolidated basis, the company reported a 32.4% rise in net profit to Rs 97.89 crore on a 33.7% increase in net sales to Rs 593 crore in Q2 FY22 over Q2 FY22.

Meanwhile, the benchmark Nifty 50 index was down 289 points or 1.67% at 16,988.75.