Sun Pharmaceutical Industries (Sun) announced that it has completed the acquisition of a controlling stake in Taro Pharmaceutical Industries (Taro) following the Option Agreement entered into in 2007 with Taro's controlling shareholders led by Taro's Chairman Barrie Levitt.
In a statement, Sun said that as a result of the closing, Sun Pharma's subsidiaries have increased their economic interest in Taro to 48.7 per cent and their voting rights to 65.8 per cent. In connection with the closing of the Option Agreement, the parties to the transactions, as well as Taro's directors, have settled all outstanding litigations among themselves.
In 2007, Sun Pharma had struck a $454 million merger deal with Taro which was unilaterally terminated by the Israeli firm in 2008. Taro was promoted by the Barrie Levitt family, which has a 12 per cent stake in the firm. Sun has been involved in a legal tussle with Taro to take over the company.
Last month, Sun received a favourable ruling from the Israeli Supreme Court in its takeover battle for Taro, following which it had offered to buy 4.8 million shares of the Levitt family, at a price of $7.75 per share.
Taro has an established franchise in dermatology and topical products in the U.S., in addition to generic product offerings in cardiovascular, neuro-psychiatric and anti-inflammatory therapeutic categories. Taro has strategic sales and marketing operations in Israel and Canada.
Sun Pharma Chairman & Managing Director Dilip Shanghvi, who has been appointed to serve as Chairman of the board of Taro, also welcomed Ilan Leviteh, former Chief Executive Officer of Makhteshim Agan Industries, one of the world's major producers of agro-chemical products and one of Israel's largest industrial companies, as a new director of Taro.
Taro has factories in Canada and Israel that manufacture tropical creams and ointments, liquids, capsules and tablets dosage forms which complement Sun's current manufacturing and development capabilities for the U.S.On the future of Taro, Mr. Shanghvi said, “Our intent is to help Taro benefit from Sun's resources and international presence in order to bring a better future to all of Taro's shareholders, as well as its employees.”
