Aurobindo Pharma to sell US-based Natrol for about Rs 4,048 crore

Aurobindo's stock reacted positively to the news, going up in morning trade but later settled flat at Rs 784.65 on the BSE

Hyderabad-based Aurobindo Pharma has reached a definitive agreement to sell its US subsidiary Natrol LLC to private equity firm New Mountain Capital and its affiliate Jarrow Formulas in an all-cash transaction valued at $550 mn (about Rs 4,048 crore). This would make Aurobindo a zero-debt company and also help it repay loans, analysts said.  

The deal, subject to customary closing conditions and regulatory approvals, is expected to close by January. 

Aurobindo said Natrol, which it acquired in December 2014, had been a “consistently profitable business” growing on all fronts. Natrol’s annual sales for the 12 months ended March 2020 were worth around