Jagsonpal Pharmaceuticals Ltd. has signed a Business Transfer Agreement for the acquisition of India and Bhutan business of Yash Pharma for INR 92.47 Crores. 

The consideration would be paid in cash and would be paid from internal accruals. The Company had a cash balance of INR 135 crores as on December 31, 2023.

The transaction is subject to customary closing conditions and is expected to close within 45 days. 

The acquisition gives access to ~INR 20,000 Crores market of Dermatology and Childcare segment and aligns well with the company’s strategic goal to broaden its presence in the Indian pharmaceutical market. By offering a comprehensive range of products, the aim is to deliver greater value to stakeholders.

It strengthens its presence in Western and Eastern regions of the country and gives access to a wider section of specialists – Dermatologists and Paediatricians.

Operating since 1972, Yash Pharma is engaged in manufacturing and marketing of Dermatology and Childcare focused products. The company has a nation-wide field presence of ~ 225 people and a portfolio of 33 brands comprising Demelanizing agents, Antifungals, Haircare, Amoebicidal and Cough preparations.

Commenting on the acquisition, Manish Gupta, Managing Director, Jagsonpal Pharmaceuticals stated “The acquisition of the India and Bhutan businesses of Yash Pharma aligns with our vision of becoming a stronger India-focussed healthcare business with multiple growth levers. As part of the transaction, Company gets access to 30+ brands with 4 brands amongst top-10 of their molecule category. This acquisition is a gateway to attractive, fast-growing Dermatology and Childcare segments, bolstering our presence in the Indian pharmaceutical market. We wholeheartedly welcome ~250 Yash Pharma employees to the growing Jagsonpal family. We will now focus on supporting the commercial leadership team to accelerate growth in business as well as leverage synergies.”

Growthally Advisors were the advisors for the transaction. ThinkLaw Advocates were the legal advisor while Deloitte Touche Tohmatsu India LLP was the financial diligence partner for Jagsonpal Pharmaceuticals Ltd. Khaitan & Co. were the legal advisor for Yash Pharma.