Sun Pharma Finalises Acquisition Of Taro For $347.73 Million
Taro has become a privately held company and is now a wholly owned subsidiary of Sun Pharma.
Sun Pharmaceutical Industries Ltd. announced on Monday the completion of its merger with Taro Pharmaceutical Industries, in a transaction valued at $347.73 million.
With this merger, Sun Pharma has acquired all the outstanding ordinary shares of Taro, excluding those previously held by Sun Pharma or its affiliates, according to a statement from the Mumbai-based pharmaceutical giant.
Consequently, Taro has become a privately held company and is now a wholly owned subsidiary of Sun Pharma.
Sun Pharma has been the majority shareholder of Taro since 2010.
"This milestone marks a significant step forward for both organisations, allowing us to effectively leverage each other's strengths and capabilities," Sun Pharma Chairman and Managing Director Dilip Shanghvi said.
Last year in May, Sun Pharma issued a letter to the Taro board, with a proposal containing a non-binding indication of interest to acquire all the outstanding ordinary shares at $38 per unit.
Based on Sun Pharma's expression of interest, the Taro board constituted a special committee of Independent Directors to evaluate Sun Pharma's proposal.
Following negotiations, the special committee of the Taro board confirmed an in-principle agreement on Dec. 10, 2023, for a revised purchase price of $43 per share and proceeded to negotiate the merger agreement.
On June 24 this year, the Registrar of Companies in Israel issued a merger certificate.
The total deal value is $347.73 million, Sun Pharma said.
Headquartered in New York, Taro has business operations in the US, Canada, Israel and Japan. It has manufacturing facilities in Canada (Brampton) and Israel (Haifa).
Taro specialises in dermatology, offering an extensive array of prescription and over-the-counter products. Sun Pharma shares closed 1.93% higher at Rs 1,494.75 apiece on the BSE.
(With inputs from PTI.)
