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Advent to acquire RA Chem Pharma

IBEF:  July 31, 2020

PE firm Advent International signed a definitive agreement to acquire a controlling stake in RA Chem Pharma Ltd, a vertically integrated pharmaceutical company promoted by Micro Labs Ltd.

The deal is sad to be valued at Rs 1,000 crore (US$ 141.86 million), though no official statement was released disclosing the financial details of the transaction.

Hyderabad-based RA Chem was founded in 2003 with core focus in active pharmaceutical ingredient (API). However, over time, it has forward integrated into pellets, formulations, and clinical research to provide end-to-end offerings to its customers. Currently, its product portfolio ranges from pharmaceuticals to niche areas of animal health and cosmeceuticals. It has four manufacturing units, two research and development centres and a clinical research facility.

Advent has invested over US$ 1.7 billion globally in six companies in the healthcare sector in the last 12 months. It has invested over US$ 700 million in seven Indian businesses in the same period across sectors such as healthcare, consumer, and financial services.

“We continue to be excited about India’s pharmaceutical landscape and investing in RA Chem Pharma will further strengthen our presence in the sector. We aim to build one of the leading API platforms in India and will leverage our financial and operational resources globally to scale RA Chem Pharma both organically and inorganically," said Ms Shweta Jalan, managing director and head of India, Advent International.

Besides RA Chem, Advent’s other investments over the last 12 months include Bharat Serums and Vaccines, Aditya Birla Capital and DFM Foods.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.