Reckitt Benckiser to buy Paras Pharma

British consumer goods company Reckitt Benckiser said on Sunday it agreed to buy privately-held Paras Pharmaceuticals for Rs32.6 billion ($726 million).

Paras, which is expected to clock sales of more than Rs1 million in 2010, makes several over-the-counter  medications, including Moov pain relief ointment, Krack heel care lotion, and D'Cold cold remedy.

Private equity firm Actis, which owns 63% of Paras, and the firm's other shareholders have agreed to sell their stakes in the company. Paras' other shareholders include Sequoia Capital, Paras founder Girish Patel and his family.

In October, India's Business Standard newspaper reported that GlaxoSmithKline Plc, Sanofi-Aventis, Novartis AG and US-based Johnson & Johnson had submitted concrete bids to acquire majority stake in Paras.

It reported that Japan's Taisho Pharmaceutical had also been expected to join the race.

Reckitt Benckiser was advised by JP Morgan on the deal. Actis and the other Paras shareholders were advised by Morgan Stanley.