Mumbai: Advent International, on Thursday, added to the 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 have not disclosed the financial details of the transaction, a person familiar with the development said the deal valued RA Chem at ₹1,000 crores.
RA Chem, based in Hyderabad, was established in 2003 and is an Active Pharmaceutical Ingredient (API). However, over time, it merged with pellets, formulations, and clinical research to provide end-to-end offerings to its customers. Its product portfolio ranges from pharmaceuticals to cosmeceuticals and animal health. It has four manufacturing units, two research and development centers, and a clinical research facility.
Advent has committed more than $ 1.7 billion worldwide to six healthcare companies in the past 12 months. PE also allocated more than $ 700 million to seven Indian companies in the same period in sectors such as healthcare, consumer, and financial services.
"We are still excited about the pharmaceutical landscape in India and investing in RA Chem Pharma will increase our presence in this sector. Shweta Jalan, managing director, and head of India of Advent International in India said: Our goal is to build one of the leading API platforms in India and will benefit from our financial and operational resources worldwide to expand RA Chem Pharma both organically and inorganically. "
In addition to RA Chem, other Advent investments in the past 12 months include Bharat Serums and Vaccines, Aditya Birla Capital, and DFM Foods.
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