Sun Pharma Industries announced on Monday that it has successfully merged with Taro Pharmaceutical Industries in a transaction valued at $347.73 million. According to a statement from the Mumbai-based pharmaceutical company, Sun Pharma has acquired all outstanding ordinary shares of Taro not already owned by it or its affiliates. This merger transforms Taro into a private company wholly owned by Sun Pharma. Sun Pharma has been the majority shareholder of Taro since 2010.
Dilip Shanghvi, Sun Pharma’s Chairman and Managing Director, commented on the merger, stating, “This milestone represents a significant advancement for both organizations, enabling us to effectively leverage each other’s strengths and capabilities.”
In May of the previous year, Sun Pharma submitted a proposal to the Taro Board, expressing a non-binding interest in acquiring all outstanding ordinary shares at a rate of $38 per share. In response, Taro’s Board formed a special committee of independent directors to evaluate Sun Pharma’s offer. After negotiations, the special committee agreed in principle to a revised purchase price of $43 per share and finalized the merger agreement on December 10, 2023. Subsequently, the Registrar of Companies in Israel issued a merger certificate on June 24, 2024.
Headquartered in New York, Taro operates in the US, Canada, Israel, and Japan, with manufacturing facilities located in Brampton, Canada, and Haifa, Israel. Taro specializes in dermatology and produces a wide range of prescription and over-the-counter products.