Advanced Enzyme, a leading speciality biotech company which manufactures enzymes, on Friday said it has entered into definitive agreements with JC Biotech for the stake buy.
The company said in a statement that the proposed transaction was approved by its board on Friday.
"We expect this deal to immediately strengthen our market leadership in API Serratiopeptidase, giving us significant competitive advantage as well as flexibility in production," Advanced Enzymes managing director C L Rathi said.
"JC Biotech has the ability to handle solvent-based fermentation & recovery, which is highly complementary to our current production process."
It also has a fairly advanced technology for the manufacturing of algal DHA, an Omega 3 Fatty Acid which finds great application in Human Nutrition, the statement said.
As on March 31, 2016, JC Biotech's revenues stood at Rs 39 crores with a profit after tax (PAT) of Rs 2.5 crore. The acquisition is expected to close latest by the end of December. Advanced Enzymes will finance the acquisition largely through internal accruals, the statement added.