NATCO Pharma is making a bold move into the South African pharmaceutical market. The company’s board has approved a major strategic investment to acquire a 35.75% stake in Adcock Ingram Holdings Limited, a leading pharmaceutical company based in South Africa. This includes NATCO’s earlier holding of 0.80%.
The acquisition, valued at around ₹2,000 crore (approximately ZAR 4 billion), involves buying over 5 crore shares from public shareholders and Adcock’s treasury. NATCO has offered ZAR 75 (around USD 4.27) per share in an all-cash deal. If accepted, NATCO will join Bidvest, which holds the remaining 64.25%, as one of the two key stakeholders in Adcock Ingram.
Adcock Ingram, founded back in 1890, operates across four main verticals—Prescription, OTC, Consumer, and Hospital products. In the financial year ending June 2024, it posted revenue of ZAR 9.6 billion (about USD 536 million), with a healthy EBITDA margin of 14.6% and net profit of ZAR 814 million (USD 45 million).
This deal is part of NATCO’s broader push to expand its global footprint. The company has also decided to set up a new wholly owned subsidiary in South Africa—NATCO Pharma South Africa Proprietary Limited—with an investment cap of ₹2,100 crore. The new entity will act as a holding and operational base to manage its local investments and business in the region.
At the same time, NATCO plans to simplify its overseas structure by liquidating Time Cap Overseas Limited, a current wholly owned subsidiary. Post-liquidation, its Brazilian arm, NatcoFarma do Brasil Ltda., will come under direct ownership of NATCO Pharma.
This acquisition is expected to unlock long-term value for both companies. For Adcock, it brings in NATCO’s strength in R&D, dossier filing, IP access, and reach into regulated markets. NATCO, on the other hand, gets a foothold in a growing market and a chance to synergize operations with a respected local player.
The transaction is likely to close by December 2025, subject to approvals from regulators in India and South Africa. If all goes as planned, Adcock Ingram may also be delisted from the Johannesburg Stock Exchange (JSE).
