New Delhi: Sun Pharmaceutical Industries Ltd on Monday announced it will acquire US-based Organon & Co in an all-cash transaction valued at an enterprise valuation of USD 11.75 billion, marking one of the largest overseas acquisitions by an Indian company.
Under a definitive agreement signed by the two companies, Sun Pharma will acquire all outstanding shares of Organon for USD 14 per share in cash.
On Monday, Shares of Sun Pharmaceutical Industries Ltd surged 7.07 per cent to Rs 1,734.90 on the NSE.
The acquisition is expected to significantly expand Sun Pharma's global footprint and position it among the world's top 25 pharmaceutical companies, with combined revenues of USD 12.4 billion.
Organon, which was spun off from Merck (known as MSD outside the US and Canada) in 2021, is a global healthcare company with six manufacturing facilities across the European Union and emerging markets.
Commenting on the acquisition, Sun Pharma Executive Chairman Dilip Shanghvi said, "This transaction represents a significant opportunity for Sun Pharma to build on its vision of 'reaching people and touching lives. Organon's portfolio, capabilities and global reach are highly complementary to our own, and we believe that bringing the two organisations together can create a stronger and more diversified platform."
Organon Executive Chair Carrie Cox said, "Following a comprehensive review of strategic alternatives, our Board determined that this all-cash transaction offers compelling and immediate value to Organon stockholders. We believe Sun Pharma is well-positioned to support Organon's businesses, employees and patients globally, and to further advance our commitment to delivering impactful medicines and solutions."
Sun Pharma said the acquisition will also make it a top-three company in global women's health and the seventh-largest biosimilar player globally.
The combined company will have operations in 150 countries, including 18 major markets each generating more than USD 100 million in revenue.
In an investor presentation, Sun Pharma said the combined business is expected to generate potential synergies of more than USD 350 million within two to four years.
The boards of both companies have approved the transaction, which is expected to close in early 2027, subject to regulatory clearances and approval by Organon shareholders.
For the year ended December 31, 2025, Organon reported revenue of USD 6.2 billion and adjusted EBITDA of USD 1.9 billion. It had debt of USD 8.6 billion and cash reserves of USD 574 million.
The acquisition adds to Sun Pharma's major deal history, including the USD 4 billion takeover of Ranbaxy in 2014 and the acquisition of Israel's Taro Pharmaceutical Industries in 2007.