Torrent Pharmaceuticals Ltd completed acquisition of the city-based Zyg Pharma Ltd for an undisclosed amount, revealed the Ahmedabad-based drug major on Saturday. The Rs.4,200-crore firm said the acquisition was funded through internal accruals.
In a regulatory filing to the Bombay Stock Exchange (BSE), Torrent said it had on Friday transacted the entire (100 percent) equity stake of Zyg Pharma in accordance with the share purchase agreement signed on May 5.
"Terms and conditions of the agreement have been satisfied and the entire equity was transferred to the company on July 17," Torrent said in its filing.
Encore group's Zyg Pharma is engaged in manufacturing creams, ointments, gels, lotions and solutions.
Promoted by the Merchant family, the 50-year-old Zyg Pharma has also a manufacturing facility at Pithampur near Indore.
"In line with its strategy to diversify into new therapy segments, the acquisition will help Torrent to strengthen its position in niche dermatological segment in the developed markets like the US and Europe," Zyg said in a statement.
As a flagship company of the Torrent group, the drug maker has plants at Indrad in Gujarat, Baddi in Himachal Pradesh and Sikkim to produce bulk drugs and formulations for domestic and export markets.