Adding to a spate of private equity (PE) investments in the Indian pharma sector this year, PE firm Advent International on Thursday said it has signed a definitive agreement to acquire a controlling stake in RA Chem Pharma Ltd, a vertically-integrated pharmaceutical company promoted by Micro Labs Ltd.
While the two parties did not disclose the financial details of the transaction, a person aware of the development said the deal valued RA Chem at ₹1,000 crore.
Founded in 2003, Hyderabad-based RA Chem’s core focus is 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. 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 committed over $1.7 billion globally in six companies in the healthcare sector in the last 12 months. The PE firm has also committed over $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 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.