NATCO Pharma Limited (NSE: NATCOPHARM, BSE: 524816), a leading Indian pharmaceutical company, has announced a definitive agreement to acquire a 35.75% stake in South African pharmaceutical major Adcock Ingram Holdings Limited for approximately ₹2,000 crore (ZAR 4 billion /$226 million), including transaction costs and related expenses. This strategic acquisition marks NATCO’s entry into the South African and broader African pharmaceutical markets.
The proposed acquisition will be made through a cash offer of ZAR 75.00 per share to minority shareholders of Adcock Ingram. NATCO will acquire a total of 51.64 million shares, comprising 5.03 crore ordinary shares from the public and 12.91 lakh shares via a fresh issue. The deal is subject to regulatory approvals from the Reserve Bank of India, South Africa’s Takeover Regulation Panel, the South African Reserve Bank, and other authorities, with expected closure by December 31, 2025.
Founded in 1890, Adcock Ingram operates across four major segments — Prescription, Consumer, OTC, and Hospital — offering a diverse portfolio of branded and generic pharmaceuticals, critical-care products, and home-care items. For the financial year ended June 2024, the company reported revenues of ZAR 9.6 billion ($536 million), EBITDA of ZAR 1.4 billion ($78 million), and a net profit of ZAR 814 million ($45 million).
Post-transaction, Adcock Ingram will continue as a private South African entity with Bidvest Group holding 64.25% and NATCO Pharma holding 35.75%. Adcock will also be delisted from the Johannesburg Stock Exchange (JSE) if the offer is accepted.
Commenting on the acquisition, Rajeev Nannapaneni, CEO and Vice Chairman of NATCO Pharma, said, “Adcock Ingram is a highly respected pharmaceutical company with a strong legacy and brand presence in South Africa. This acquisition provides NATCO with an excellent strategic entry point into the Southern African market and positions us to expand our footprint across the African continent. We see significant opportunities to bring value through our R&D capabilities, global marketing network, and portfolio of affordable medicines.”
As part of the transaction strategy, NATCO will also incorporate a wholly owned subsidiary in South Africa named NATCO Pharma South Africa Proprietary Limited, with an investment of up to ₹2,100 crore. The new entity will serve as the company’s base for regional expansion and future investments.
In a related corporate restructuring, NATCO will liquidate its wholly owned subsidiary Time Cap Overseas Limited (TCOL) and directly hold its investment in Brazil-based NatcoFarma do Brasil Ltda, currently a step-down subsidiary.
Andrew Hall, CEO of Adcock Ingram, welcomed the deal, stating, “NATCO’s vote of confidence in our business is a recognition of our strong position in the South African pharmaceutical landscape. The partnership will bring synergies in product development, market reach, and access to affordable medication for the region.”
Mpumi Madisa, Chairperson of Adcock Ingram and CEO of Bidvest Group, added, “Bidvest is fully supportive of NATCO’s offer, which not only unlocks synergies but also opens new doors for Adcock’s geographic and product diversification.”
Financial advisors to the transaction include BDO (independent valuation) and NATCO’s internal team. The acquisition aligns with NATCO’s long-term strategy of expanding into high-growth emerging markets while delivering sustained shareholder value.