Torrent Pharmaceuticals [NSE:TORNTPHARM], an Ahmedabad, India-based pharmaceutical company, has reached an agreement to acquire a controlling stake in skincare products maker Curatio Healthcare for around USD 300m, according to two sources familiar with the situation.  

Among Curatio’s current backers, California-headquartered venture capital investor Sequoia Capital and homegrown private equity firm ChrysCapital, which together hold about 53.3%, will exit through the upcoming transaction, the sources said. Promoter GK Ramani will pare his stake, they added. The sources had no immediate information regarding the stake size Ramani will retain. 

Sequoia Capital became an investor in Chennai-based Curatio in 2014 after investing INR 1bn (USD 12.5m), and owns around 33.3%. ChrysCapital holds around 20%, having acquired part of Fulcrum Venture India’s stake in the drug manufacturer in 2018 for INR 1.3bn (USD 16.2m), as per media reports at the time. 

The remaining 46.7% of Curatio is held by promoter GK Ramani and the professional management team, as reported.  

Torrent Pharmaceuticals has a market cap of about INR 773.1bn (USD 9.66bn), making this a relatively small transaction for the company. The price tag of about USD 300m compares to a January media report, noting that the deal would likely value Curatio at INR 20bn to INR 30bn (USD 250m-USD 375m). 

Besides Torrent Pharmaceuticals, other shortlisted bidders included JB Chemicals [BOM:506943], Dr Reddy's Laboratories [BOM:500124], Zydus Healthcare, and Aurobindo [BOM:524804], the sources noted. 

The sales process is being managed by financial advisory firms Edelweiss and MAPE Advisory, as reported.  

Established in 2005, Curatio manufactures and sells over 50 products catering to haircare, facecare, bodycare, and babycare. It has a network of over 700 distributors and is affiliated to more than 6,000 doctors across India. Its products are sold in India, the Philippines, Nepal, and Sri Lanka, according to its website.  

Torrent Pharma, which operates in over 40 countries across Europe, the US, and Asia, provides medicines in treatment categories including therapeutic, cardiovascular, central nervous system, gastrointestinal, and women’s healthcare. It also has a significant presence in diabetology, pain management, gynaecology, oncology, and anti-infective segments, per its website.  

In May this year, Torrent Pharmaceuticals acquired four brands from Dr. Reddy's Laboratories. One of the acquired brands, Styptovit-E, has an estimated INR 5bn (USD 64.5m) market size, as per Torrent’s stock exchange filing. Other acquired brands include Finast, Dynapress-T, and Dynapress.  

Torrent Pharmaceuticals’ shares closed at INR 1,526.70 apiece on the NSE today (22 August) — down 1.1% from Friday’s close. 

Torrent Pharmaceuticals, Curatio Healthcare, Sequoia Capital, and ChrysCapital did not respond to requests seeking comments.