JBCPL to buy probiotic and reproductive brands from Sanzyme for Rs 628 crore

KKR-controlled drug maker JB Chemicals & Pharmaceuticals Limited (JBCPL), on Wednesday announced that it will acquire probiotics and reproductive brands for the India market from Sanzyme Private Limited (Sanzyme) for Rs 628 crore.
The transaction is expected to be completed in the next two weeks subject to customary closing formalities.

The acquired portfolio includes Sporlac which is the third largest probiotics brand in India and specialized products such as Lobun - a probiotic used for delaying progression of Chronic Kidney Disease and Oxalo - an alternate risk-free therapy to decalcify kidney stones. The reproductive health segment has a complete range of infertility and hormone products.

As per IQVIA for year ended Dec 2021 data, the revenue for the combined brands was Rs 160 crores.

The acquired brands have a pan-India presence and wide distribution reach of 300,000 chemists and 100,000 prescribers.

The acquisition will position JBCPL amongst the top five probiotics players in the country, in a segment which is growing at around 12 -14%.

JBCPL sees the category synergistic with its strong prescriber base in gastroenterology and nephrology segments and will derive significant visibility by leveraging JBCPL’s distribution network across the country.

Sanzyme, ranked amongst the top five probiotics players in the country, is engaged in the manufacture, distribution and marketing of specialty probiotics formulations, infertility management products and nutraceuticals products.

“This (acquisition) is in line with our stated objective of building big brands through category leaders," said Nikhil Chopra, CEO of JBCPL.

“This acquisition also reinforces our strategic intent to evaluate opportunities to supplement our growth ambition in India. Overall, our objective is to deploy capital judiciously to enhance value for all stakeholders,” Chopra added.