KKR to Acquire a Controlling Stake in J.B. Chemicals & Pharmaceuticals

Investment to Further Strengthen and Expand J. B. Chemicals & Pharmaceuticals’ Presence in High-Growth Branded Formulations Markets

MUMBAI, India–(BUSINESS WIRE)–Global investment firm KKR today announced that it has entered into a definitive agreement to purchase a controlling stake in J.B. Chemicals & Pharmaceuticals Ltd. (NSE: JBCHEPHARM) (“J.B. Chemicals” or “the Company” or “JBCPL”), one of the leading Indian pharmaceutical companies specializing in branded formulations. As part of the agreement, KKR will acquire its stake from the founding Mody family at a purchase price of INR 745 per share and make an open offer for an additional 26% of the Company. Details of the open offer will be disclosed at the appropriate time.

J.B. Chemicals is one of the leading pharmaceutical companies in India, supplying affordable, high-quality products in the cardiac, gastrointestinal and anti-infective therapeutic areas across the branded formulations market. The Company’s portfolio includes four flagship brands in India, Cilacar, Metrogyl, Nicardia and Rantac. The Company currently exports its branded formulations to more than 40 countries around the world. J.B. Chemicals’ contract manufacturing capabilities also allow it to partner with large, international brands to develop a diverse range of innovative specialty products, including tablets, injectables, creams and ointments, lozenges, herbal liquids and capsules.

J.B. Mody, Founder, Chairman and Managing Director of J.B. Chemicals, said, “For more than four decades, J.B. Chemicals’ mission has been to deliver affordable, high-quality pharmaceutical products that improve the lives of individuals living in India and around the world. We are thrilled that KKR – with its deep knowledge of the pharmaceutical industry and experience in investing in the sector, as well as its extensive investments in India – will take our mission forward and build on the foundation of core values that our family has instilled in this company. This will also create growth opportunities for our people to progress.”

Sanjay Nayar, Partner and CEO of KKR India, said, “We are pleased that the promoters of J.B. Chemicals have selected us to take over their rich legacy and to help the company continue its expansion, which is clearly driven by its diversified product portfolio and state-of-the-art manufacturing capabilities. We believe J.B. Chemicals has an opportunity to accelerate its growth and leverage its strengths to enter into new therapeutic areas. We look forward to working with the management team to build on the company’s strong foundation, and believe this investment underscores KKR’s ongoing commitment to India’s long-term economic prospects and the potential of its companies.”

KKR has a long track record of supporting companies in the pharmaceutical and healthcare sectors globally. In India, KKR’s pharmaceutical and healthcare investments include Max Healthcare and Radiant Life Care, which collectively comprise the largest hospital network in North India. KKR has also previously invested in Gland Pharma, an Indian pure-play generic injectable pharmaceutical products company that was the first company in India to get US Food and Drug Administration approval for pharmaceutical liquid injectable products.

KKR will fund this investment from Asian Fund III. The transaction is subject to regulatory and other customary approvals.

Avendus Capital served as financial advisor to the Promoters of J.B. Chemicals, and Platinum Partners (Mumbai) acted as legal counsel. Moelis & Company served as financial advisor, EY as accounting and tax diligence advisor, and Shardul Amarchand Mangaldas & Co. and Simpson Thacher & Bartlett LLP acted as legal counsel to KKR. ICICI Securities Limited will be acting as the manager to the public tender offer.

About J.B. Chemicals & Pharmaceuticals Ltd.

Established in 1976, J.B. Chemicals & Pharmaceuticals Ltd. is one of India’s leading pharmaceutical companies. An integrated, publicly-listed organisation with a focus on supplying affordable, quality products both in India and internationally, JBCPL is trusted by healthcare professionals globally. Today, JBCPL exports to over 40 countries across the world and earns more than half its revenue from its international business. JBCPL is widely committed to manufacturing a range of innovative specialty products that include various pharmaceutical dosage forms like tablets, injectable (vials, ampoules, form fill seal), creams & ointments, lozenges, herbal liquids and capsules. JBCPL has its headquarters in India’s financial capital, Mumbai. With a domestic sales force of 2000 people, several internationally approved state-of-the-art manufacturing units, a research and development center, and subsidiaries abroad, JBCPL has a consistent track record of enhancing value for its shareholders.

About KKR

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

Contacts

For KKR Asia:

Anita Davis, +852 3602-7335

Anita.Davis@kkr.com

AdFactors (For KKR India):

Saksham Maheshwari, +91 9930990927

saksham.maheshwari@adfactorspr.com