Sun Pharma on Monday announced the completion of the merger of Taro Pharmaceutical Industries Ltd. with its subsidiary.
As part of this merger, Sun Pharma acquired all outstanding ordinary shares of Taro other than the shares already held by Sun Pharma or its affiliates.
As a result of the merger, Taro will be delisted from the NYSE and it becomes a privately held company 100% owned by Sun Pharma.
Sun Pharma has been the majority shareholder of Taro since 2010., holding 78.5% stake.
On May 26, 2023, Sun Pharma issued a letter to the Board of Directors of Taro with a proposal containing a non-binding indication of interest to acquire all of the outstanding ordinary shares in Taro, other than any shares already held by the company or its affiliates for a purchase price of $38 per ordinary share.
Based on the Sun’s expression of interest, the Taro Board constituted a special committee of its independent directors to evaluate Sun’s proposal.
After negotiations, on Dec 10, 2023, the special committee of Taro Board confirmed its in principle agreement for a revised purchase price of $43.00 per share and negotiating the merger agreement.
On June 24, 2024, the Registrar of Companies in Israel issued a Merger Certificate.
The total deal value is $347.73 million.
Taro had net sales of US$ 629 million in FY2023-24 and cash of $1.3 billion as of March 31, 2024.
Taro primarily focused on dermatology, Taro produces a wide range of prescription and over-the-counter products. Its product portfolio includes the well-known Proactiv® line of products used to treat acne.
“This milestone marks a significant step forward for both organizations, allowing us to effectively leverage each other’s strengths and capabilities,” said Dilip Shanghvi, chairman and managing director of Sun Pharma.
“Together, we are excited about starting this new chapter and creating a more robust, successful future for the combined entity,” Shanghvi said.
