Companies

Reckitt Benckiser to acquire Paras Pharma

Bart Becht, CEO, Reckitt Benckiser with company’s products. Photo: Bijoy Ghosh  

Multinational FMCG giant Reckitt Benckiser on Monday said it had agreed to fully acquire Ahmedabad-based Paras Pharmaceuticals for Rs.3,260 crore.

As part of the deal, the company will buy the 63 per cent stake of emerging markets private equity investor Actis, along those of Sequoia Capital and the remaining shareholders, including Paras founder Girish Patel and his family, Reckitt Benckiser (RB) says in a statement.

RB will finance the transaction from existing facilities, the statement adds.

Commenting on the acquisition, Reckitt Benckiser CEO Bart Becht said: “It creates a material health care business in India, one of the most promising health care markets in the world with the addition of a number of strong and leading brands.”

Paras Founder and Chairman Girish Patel, who will sell his family's stake in the business said: “We have been on a rewarding journey with Actis and the quality of our partnership has proved to be the key reason for the recent success of the company...I believe RB will take our already strong brands to the next level.”

Paras is a privately-owned firm with a portfolio of leading over-the-counter health and personal care brands including, Moov, D'Cold, Dermicool, Krack, Itch Guard and Ring Guard.

It also has a personal care business led by Set Wet, a leading hair gel and deodorant brand.

In the fiscal year ended March 2010, Paras had net sales of Rs.401.4 crore with earnings before interest, taxes, depreciation and amortisation for the same year of Rs.108.30 crore, the statement adds. The company has a brand new state-of-the-art and good manufacturing practice compliant manufacturing plant located at Baddi in Northern India, which employs around 700 people.

While RB was advised by JPMorgan, Actis and the other Paras shareholders sought the services of Morgan Stanley for the purpose.


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Printable version | Oct 21, 2021 4:39:28 PM | https://www.thehindu.com/business/companies/Reckitt-Benckiser-to-acquire-Paras-Pharma/article15591893.ece

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