Torrent Pharma to pay Rs 3,600 crore for Unichem's branded business

Torrent Pharmaceuticals on Friday pulled off its fifth acquisition in four years, buying Mumbai-headquartered Unichem Laboratories’ portfolio of 120 brands in India and Nepal, and a manufacturing facility in Sikkim, for Rs 3,600 crore on a slump-sale basis. Torrent will fund the acquisition through internal accruals and bank borrowings. 

Unichem's domestic formulations business recorded revenues of Rs 856 crore in financial year 2016-17, and accounted for over 60 per cent of the company’s revenue. At Rs 3,600 crore, Torrent is paying 4.2 times its revenue for this acquisition.  Unichem's market capitalisation stood at Rs 2,848 crore based on its stock price