PE firm Advent International acquires majority stake in Bharat Serums Vaccines
US-based global private equity firm Advent International November 18 said it has signed a definitive agreement to acquire a majority interest in Bharat Serums and Vaccines (BSV).
The financial terms of the deal were not disclosed. The acquisition is expected to close by the end of 2019.
With this transaction, OrbiMed and Kotak, two private equity firms that previously held minority positions in Bharat Serums, will fully exit their investments in the company.
The Daftary family, which founded BSV, is retaining a meaningful equity stake in the business and partnering with Advent on the company’s next stage of growth.
Founded in 1971 in Mumbai, Bharat Serums is one of the fastest-growing biopharmaceutical companies in India.
BSV researches, develops, manufactures and markets specialized injectable medicines with a portfolio focused on biotech and biological products. The company has multiple niche products that are leading brands across women’s health, assisted reproductive treatment, critical care and emergency medicine.
“Bharat Serums has a differentiated portfolio of biotech and biological offerings in high-growth segments,” said Pankaj Patwari, a Director at Advent International in Mumbai.
“We are also excited about the company’s robust R&D pipeline, which offers the potential to capture whitespace both in India and global markets,” Patwari added.
“We are thrilled to partner with Advent and continue BSV’s journey to deliver innovative and specialized products,” said Bharat V Daftary, a member of the founding family of BSV.
“Our business has demonstrated consistent product innovation and revenue growth, and with this partnership we will seek to further expand our presence in select large emerging markets. We look forward to the resources and expertise Advent will offer BSV,” Daftary added.
Advent International has significant experience in the healthcare industry globally. In the past 29 years, the firm has invested or committed $ 9 billion in 48 companies in the sector, including 19 businesses involved in pharmaceutical R&D, production and distribution.
Recent pharmaceutical transactions include Zentiva’s acquisition of Alvogen’s Central and Eastern European generics business (Advent is providing equity capital to help finance the transaction), BioDuro (contract R&D), Industria Chimica Emiliana (pharmaceutical ingredient production), Somar (generic pharmaceuticals), Syneos Health (clinical development and commercialization services) and Zentiva (generic pharmaceuticals).
Advent has been investing in India since 2007. During this time, it has deployed more than $ 1.5 billion in 11 companies with headquarters or operations in the country. In addition to BSV, new and follow-on investments this year include Aditya Birla Capital, the holding company for the financial services businesses of Aditya Birla Group; DFM Foods, a leading producer of packaged snack foods; and Enamor and Dixcy Textiles, two leading innerwear brands.
The firm has invested or committed more than $ 600 million in five Indian businesses this year alone in sectors such as healthcare, consumer products and financial services.
Innergize Solutions acted as Strategic Advisor to BSV on the transaction.Get access to India’s fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code “GETPRO”. Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.