KKR & Co may invest Rs1,000 cr in Hyderabad-based Gland Pharma
10 Sep 2013
US-based private equity firm KKR & Co is likely to buy one-third of Gland Pharma for around Rs1,000 crore, valuing the Hyderabad-based company at around $500 million (Rs3,000-Rs3,500 crore), The Economic Times today reported, citing sources familiar with the development.
The deal, likely to be finalised by this month-end, through a combination of fresh equity infusion into the company and buyout of existing investor Evolvance India Life Science Fund, the report said.
The KKR transaction will see Gland Pharma's promoter Ravi Penmetsa and other shareholders holding around 60 per cent in the company.
About Rs600-Rs700 crore of the investment will be used by the company to expand its manufacturing capacity while the remaining will be used to buy out the Evolvance's stake in the company," the report added.
Founded in 1978 as an exclusive facility for Small Volume Parenterals (SVPs), Gland Pharma is India's leading manufacturer of low molecular weight heparin and other niche products in the cardiovascular and orthopaedic segment.
The company set up injectables facility in 1996 in collaboration with Vetter Group of Germany. The collaboration provided Gland Pharma a technological edge in injectables and Pre Filled Syringes.
It has pioneered Heparin technology in India and is a leader in the GlycosAminoGlycans range of molecules. The company manufactures Active Pharmaceutical Ingredients (APIs) and injectable formulations for niche segments such as osteoarthritis, anti-coagulants, gynaecology, and ophthalmology.