Torrent Pharmaceuticals today said it will acquire Elder Pharmaceuticals' branded formulation business in India and Nepal for Rs 2,000 crore.
"Torrent has entered into a definitive binding agreement with Elder to acquire its branded domestic formulations business in India and Nepal for a consideration of Rs 2,000 crore," Torrent Pharmaceuticals Ltd said in a filing with the BSE.
Elder's India business comprises a portfolio of 30 brands including some market leading ones in women healthcare, pain management, wound care and neutraceuticals.
Torrent would fund the acquisition through a mix of internal accruals and bank borrowings, the company said.
"The transaction is a strategic fit for Torrent and will strengthen its core prescription based business.
This acquisition strengthens our position in the women healthcare, pain management," Torrent Group Chairman Sudhir Mehta said.
Elder CEO and MD Alok Saxena said, "This path breaking domestic consolidation by Torrent addresses our recent challenges and will significantly help Elder leverage its balance sheet."
The transaction has been approved by the boards of both the companies and is subject to approval by shareholders and other necessary regulatory nods. The deal is expected to close in the first half of 2014.
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