UK-based Reckitt Benckiser (RB), the company behind brands such as Dettol, Clearsil, Durex and Disprin, said on Monday it would acquire Ahmedabad-based Paras Pharmaceuticals, which owns medicine brands such as Moov, Krack and D’Cold, in a R3,620-crore deal.
Privately-held Paras is valued at eight times its net sales of R401 crore in 2009-10 in the deal that would give a gain of more than Rs 1,000 crore to the founding Patel family.
Elite suitors including Emami, Dabur, Piramal Healthcare, Pfizer, GlaxoSmithkline, Merck, Abott and Sanofi Aventis were in the race to acquire Paras before RB won its hand.
“The acquisition of Paras is another step forward in RB’s growth strategy in consumer healthcare,” said Bart Becht, chief executive officer, RB.
“It creates a material health care business in India, one of the most promising health care markets in the world, with the addition of number of strong and leading brands.”
RB will buy 100% in Paras, nurtured by founder-chairman Girish Patel’s family and employee who own 29%, while private equity investors Actis (63%) and Sequoia Capital (8%) have been major investors.
“I believe RB will take our already strong brands to the next level, while also providing our high quality management team with the opportunity for further development,” said Patel.
RB’s skin cream Clearsil and disinfectant Dettol match Paras-owned product lines.
Paras brands inlcude heel-care ointment Krack, anti-cold and cough medicine D’Cold, and pain-relief ointment Moov. In personal-care, it has Livon and Set Wet, and skin care brands Dermicool and Borosoft.
Paras has a manufacturing plant located at Baddi in Himachal Pradesh, where it employs around 700 people.