Paras Pharma to be Acquired for Rs 3,260 Crore by Reckitt Benckiser

MUMBAI: Privately-held Indian firm Paras Pharmaceuticals is to be acquired by British consumer goods company Reckitt Benckiser, Reckitt Benckiser said on Sunday. The company on Sunday said that it agreed to buy Paras Pharma for Rs 3,260 crore ($726 million). Reckitt Benckiser aims of expanding its business in health and personal care to help boost slower growth.

“It creates a material health care business in India, one of the most promising health care markets in the world,” Reckitt Chief Executive Officer Bart Becht said in the statement.

Paras Pharmaceuticals makes various over-the-counter medications that include Moov pain relief ointment, Krack heel care lotion, and D’Cold cold remedy. In the fiscal year 2010, the company clocked sales of more than Rs 400 crore.

Emami

Private equity firm Actis, which owns 63 percent of Paras, will sell its stake in Paras, based in Ahmedabad in the western Indian state of Gujarat, to Reckitt, the companies said in a statement today. Firm’s other shareholders including Sequoia Capital, Paras founder Girish Patel and his family has also agreed to sell their stakes in the company.

Reckitt was advised by JPMorgan Chase & Co. Actis and the other Paras shareholders were advised by Morgan Stanley for the acquisition.

According to the reports, number of global drug companies including GlaxoSmithKline Plc, Sanofi-Aventis, Novartis AG, Johnson & Johnson, Taisho Pharmaceutical had bid to acquire majority stake in Paras. Paras is now an over Rs 500-crore company with innovative product portfolio, including brands like Moov, Krack, Dermicool, Livon and D’Cold.

On Monday, Shares of personal care products maker Emami Ltd jumped 20 percent to hit its upper circuit after its attempt to acquire privately-held Indian Paras Pharmaceuticals fell through. After acquiring Zandu Pharmaceutical Works in November 2008, Emami was looking for acquisitions in the personal care space. Emami products includes ‘Fair and Handsome’, ‘Navratna Oil’, ‘Boroplus’ and ‘Sonachandi Chyawanprash’.

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