New Delhi, June 29 -- Ahmedabad-based drugmaker Torrent Pharmaceuticals is set to acquire a controlling stake in JB Chemicals and Pharmaceuticals (JB Pharma) from global investment firm KKR, at an equity valuation of Rs.25,689 crore. The deal will be followed by a merger of the two entities, the company announced on Sunday evening.

The deal will strengthen Torrent's presence in the Indian market, as well as facilitate its entry into the fast-growing contract development and manufacturing (CDMO) segment.

Torrent will acquire a 46.39% equity stake (on a fully diluted basis) in JB Pharma through a share purchase agreement for Rs.11,917 crore at Rs.1,600 per share, followed by a mandatory open offer to acquire up to 26% of the company's sha...