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JB Chemicals completes sale of Russia- CIS OTC business to Cilag

15 Jul 2011 Evaluate

JB Chemicals completed transaction of sale of Russia- CIS OTC Business to Switzerland-based -- Cilag GmbH International -- a wholly owned subsidiary of Johnson & Johnson, along with transfer of worldwide rights and registrations of three OTC brands namely Doktor MOM, Rinza and Fitovit.

Following successful completion of customary conditions, the company has received, in terms of various transaction documents, a consideration of about Rs 738 crore, and an agreed portion of the consideration in escrow account. Likewise, the company’s Russian subsidiary has received consideration of about $35 million.

Earlier in May, the company’s board had approved the sale of this business and OTC brands to Cilag. The company’s Russian subsidiary has also achieved successful completion of its transaction of sale of OTC inventory and receivables to Johnson & Johnson LLC, a Cilag’s affiliate.

The Russia-CIS OTC Business along with OTC brands now vests in Cilag. The company would now supply the acquired products to Cilag for these markets.

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