JB Chemicals and Pharmaceuticals Ltd has approved the sale of its over the counter business in Russia and CIS countries to Cilag GmbH International, a wholly owned subsidiary of Johnson & Johnson. The consideration for this transaction is Rs 938 crore. Including the sale of trademarks, registration, brands etc, the total consideration of the deal is about Rs 1,155 crore, and the deal is expected to be completed in two months.
The Russia/CIS OTC business is being sold as a going concern on a slump sale basis including OTC trademarks, brands, patents, registrations and domain names. The sale will also involve the transfer of the employees (about 220 people) of the Russia/CIS OTC business.
Cilag's affiliate, Johnson & Johnson LLC, has also entered into a contract with the company's wholly owned subsidiary situated in Russia for purchase of its OTC inventory and receivables for a consideration of $47 million (Rs 211crore).
