Ahmedabad-based drugmaker Torrent Pharmaceuticals Ltd has signed a share purchase agreement to acquire Zyg Pharma Pvt Ltd, a company engaged in manufacturing various dermatological formulations like creams, ointments, gels, lotions and solutions, for an undisclosed amount, it has said.
Torrent would fund the acquisition through internal accruals and expects to close it by August.
Zyg Pharma is part of the Encore Group, promoted by the Merchant family and is engaged in specialty pharmaceutical business for over 50 years.
The company has been a manufacturing partner to several international companies in India and has also build an international business through partners in regulated markets as well as in emerging markets.
Zyg Pharma has a manufacturing facility in Pithampur (Indore) and has capabilities for on site development, analytical method development and QC laboratory with separate areas for chemical, instrumental and micro sections.
In line with its strategy to diversify into new therapy segments, this acquisition will help Torrent strengthen its position in niche dermatological segment especially in the developed markets like US and Europe.
Torrent Pharma, with an annual turnover of over Rs 4,200 crore is the flagship company of the Torrent Group which also has presence in power generation among other businesses. It has manufacturing plants located at Indrad, Baddi and Sikkim to produce formulations and bulk drugs.
Last year Torrent acquired branded formulation business of Elder Pharmaceuticals in India and Nepal for Rs 2,004 crore.
Torrent is backed by ChrysCapital, which invested in the firm through open market purchases.
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