Kohlberg Kravis Roberts (KKR), one of the world’s most formidable and respected private equity firms has emerged as the front-runner to buy a 51% stake in JB Chemicals and Pharmaceuticals. JB Chemicals manufactures popular OTC drugs, Rantac and Metrogyl. The proposed acquisition, which includes an open offer, is expected to cost Rs.3000 crore in an all cash deal. KKR is expected to pay a premium of 10-20% to the market value of JB Chemicals because it is a bulk acquisition involving change in control. The transaction should value the company at around Rs.6000 crore. Apparently, JB had been discussing the majority stake sale with several private equity players over the past few months. The Mody promoter family will sell around 51% out of their 55.91% stake. Pharma companies are the latest targets of interest among the private equity player as several companies are available at better valuations and drug inventory levels have fallen after the covid-19 outbreak.