Detroit-based Caraco Pharmaceutical Laboratorieshas agreed to merge with majority owner Sun Pharmaceutical Industries and Sun Pharma Global, according to Crain’s Detroit Business.

Sun, which owns 75.8% of Caraco's common stock, has agreed to pay all Caraco shareholders a cash payment of $5.25 per share when the deal closes. If shareholders approve, Caraco and Sun will form a private "indirect wholly-owned subsidiary of Sun Pharma incorporated in Michigan." As a privately held company, Caraco's stock would no longer be traded on the NYSE Amex. Last June, the FDA shut down Caraco’s Detroit operations for a variety of manufacturing violations. It has been working the past year to improve quality in the plant. Caraco develops, manufactures, markets and distributes generic pharmaceuticals.