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ICICI Securities Report
JB Chemicals and Pharmaceuticals Ltd. announced the acquisition of several brands from Sanzyme to foray into the nutraceuticals and probiotics market for a cash consideration of Rs 6.28 billion (excluding taxes, stamp duties and working capital).
These categories will be synergistic with gastroenterology and nephrology therapies where JB Chemicals already has a strong presence.
Acquired brands Sporlac, Lobun, Oxalo, Pubergen, Nano-leo and Gynogen are among the leaders in their segment and have generated Rs 750 million in H1 FY22 (Rs 880 million in FY21).
With expected annual sales of Rs 1.35 billion and an Ebitda margin of ~33%, the transaction is reasonably valued at approx. five times FY22E sales and ~14 times FY22E enterprise value/Ebitda, in our view.
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