Advent to acquire controlling stake in RA Chem Pharma at $133m valuation

Photo: Reuters

Adding to a spate of private equity investments in the Indian pharma sector this year, PE firm Advent International on Thursday said that 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, the PE investor said in a statement.

While the two parties did not disclose the financial details of the transaction, a person aware of the development said that the deal values RA Chem at around Rs1,000 crore.

Founded in 2003 in Hyderabad, RA Chem’s core focus is API, however, over time the company 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; supported by four manufacturing units, two R&D laboratories and a clinical research facility.

“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 at Advent International.

In addition to RA Chem, Advent’s other investments in the last 12 months include Bharat Serums and Vaccines, Aditya Birla Capital and DFM Foods.

“We strongly believe that this transaction will further build upon RA Chem’s strengths to continue its journey to deliver high quality, niche and specialized products to its customers globally,” said Dilip Surana, chairman and managing director of Micro Labs Ltd.

While overall PE activity in India has been subdued this year, with the exception of Reliance’s Jio Platforms, on account of the covid-19 pandemic and subsequent nationwide lockdown, investors have continued to be active in writing large cheques for stakes in pharma companies.

Mint reported on 2 July that American PE firm KKR has entered into an agreement to acquire up to 54% stake from the promoters of JB Chemicals & Pharmaceuticals Ltd for round Rs3,109 crore.

This article was first published on livemint.com.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.