Torrent Pharmaceuticals (TP) has entered into definitive agreements to acquire 100% stake in Curatio Health Care (I) Private Limited (“Curatio”), a Chennai based dermatology company with a strong focus on cosmetic dermatology.
- Curatio was founded in 2005 and is backed by Sequoia, Anicut and ChrysCapital.
- It has a strong presence in the cosmetic dermatology segment with a portfolio of over 50 brands, marketed in India. The portfolio consists of leading brands such as Tedibar, Atogla, Spoo, B4 Nappi, and Permite, which are ranked amongst top 5 brands in their covered market. 95% of it’s revenues comes from dermatology brands
- Curatio’s turnover track record
- FY 20 – Rs 175 crore
- FY 21 – Rs 180 crore
- FY 22 – Rs 224 crore
- FY 23 – projected of Rs 275 crore
- Purchase consideration is Rs. 2,000 crore.
- Rs. 115 crores for cash and cash equivalents in Curatio
- Balance Rs 1,885 crore Enterprise Valuations
- Implied FY 23 valuation = 7x sales. This is not cheap but then this is not a cheap market either !
Rationale for acquisition
The subject acquisition allows TP to improve it’s position significantly in the dermatology category from 21 pre-acquisition to 10 post-acquisition.
The Company also expects to leverage it’s own resources and better utilise Curatio’s online and offline selling experience to further push forward into the category.