Blackstone signs agreement to sell stake in Emcure Pharmaceuticals to Bain Capital

Global private equity major Blackstone has entered into an agreement to sell its equity stake in Pune-based Emcure Pharmaceuticals Ltd to Bain Capital. The financial terms of the investment were not disclosed.

This was Blackstone's first investment in India, after it set up operations.

The investment was held by one of Blackstone's affiliated private equity entities based in Mauritius. The private equity major had invested $49 in 2006 for about 13 per cent stake.

Emcure is engaged in developing, manufacturing and marketing a well-diversified range of pharmaceutical products globally. It is currently ranked as the 14th largest pharmaceutical company (according to IMS Health India, Secondary Stockist Audit, March 2013) in India in terms of domestic sales.

The transaction is subject to conditions under contract and law including approvals such as Foreign Investment Promotion Board (FIPB) approval.

''Blackstone has been a valuable strategic partner for us over the last few years," said Satish Mehta, Emcure's managing director and chief executive officer, adding, "In addition to providing growth capital to expand our business multi-fold, they also shared strategic insights to manage our fast growing business effectively."

Emcure was the first private equity investment by a Blackstone managed fund in India.

Amit Dixit, co-head of private equity at Blackstone Advisors India Pvt Ltd and a director on Emcure's board, said, ''Since our investment, the company has significantly strengthened its position in the Indian pharmaceutical market and has established a strong presence in the US and other semi-regulated markets."