Torrent Pharma to acquire Sequoia-backed Curatio Health for ₹2,000 cr

Mumbai: Torrent Pharmaceuticals will acquire Chennai-based skincare company Curatio Healthcare for ₹2,000 crore. This includes ₹115 crore of cash and cash equivalents in the acquired business, indicating an enterprise value of ₹1,885 crore, the Ahmedabad-based company said in a statement on Tuesday.

Curatio's portfolio consists of over 50 brands, including Tedibar, Atogla, Spoo, B4 Nappi, and Permite, which are ranked among the top five brands in their covered market. Dermatology accounts for 82% of Curatio's revenue. Within dermatology, cosmetic dermatology is a leading contributor. Its top 10 brands account for 75% of total revenue.

Torrent Pharma will add 600 medical representatives and a distribution network of 900 stockists via the buyout, according to the statement. The transaction will see the exit of existing investors ChrysCapital (which owns 20% stake) and Sequoia Capital (33%).


ChrysCap acquired a minority stake from Fulcrum Venture India in 2018 in a deal worth ₹130 crore, while Sequoia first invested about ₹100 crore in 2014. ET was the first to report on August 26 that Torrent was set to acquire Curatio for ₹2,100 crore. On April 11, ET reported that Torrent Pharma and KKR-controlled JB Chemicals were the final contenders to acquire Curatio Healthcare, which was set up in 2005 by a team of former executives of American Remedies after it merged with Dr Reddy's Laboratories in 1999. Curatio reported revenue of ₹224 crore in FY22.

With sales up 25% till August, the company is expected to cross ₹275 crore in revenue this financial year. The buyout will help Torrent Pharma enter the league of top 10 players in the dermatology segment and become the leader in the cosmetic dermatology space, it said.

"The acquisition offers Torrent the opportunity to enhance its presence in dermatology with a differentiated portfolio and is a strong strategic fit. Curatio has built a commendable set of high market share brands in cosmetic and paediatric dermatology that we look forward to adding to our product offerings," said Aman Mehta, director, Torrent Pharma.

Torrent Pharmaceuticals, with annual revenue of more than ₹8,500 crore, is ranked eighth in the Indian pharmaceutical market and is among the top five in the cardiovascular, gastro-intestinal, central nervous system, and vitamins minerals nutritional therapeutics segments.

Edelweiss Financial Services and Mape Advisory were the advisors for the transaction.