J.B. Chemicals & Pharmaceuticals (JBCPL) has received its board’s approval for entering into a definitive agreement to sell its Russia/CIS OTC Business to Cilag GmbH International, a wholly owned subsidiary of Johnson & Johnson. The consideration for this transaction is Rs 9,385.10 million.
Further, the board has also approved the sale of worldwide rights and registrations of 3 OTC brands (Doktor Mom, Rinza and Fitovit) to Cilag, for an additional consideration of Rs 60.67 million. 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 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. In addition, the company has signed a long term agreement to supply Cilag finished products for the acquired Russia/CIS OTC Business. The transaction is expected to close in mid 2011.
JBCPL is one of India’s leading pharmaceutical companies which manufacture and markets a diverse range of pharmaceutical formulations, herbal remedies and APIs.
