In further strengthening its position in India’s pharma and healthcare space, global private equity investor, Advent International on Monday announced picking up majority stake in Bharat Serums and Vaccines Limited (BSV).

Advent informed that it has entered into a definitive agreement to acquire a majority stake in BSV- a biopharmaceutical leader in women’s healthcare and assisted reproductive treatment.

The financials of the deals were not officially revealed, but the persons tracking the deal pointed the transaction to be pegged at around USD 250 million (approx. RS 1795 crore) with advent holding the majority stake - roughly around 55-60 per cent. The deals puts the enterprise value of BSV at USD 500 million (approx Rs 3600 crore).

The deal - expected to close by the end of 2019, will pave the way for BSV’s existing PE investors - OrbiMed PE and Kotak PE, who held minority stakes in the company to fully exit their investments.

The founders Daftary family is retaining a meaningful equity stake in the business and is partnering with Advent on the company’s next stage of growth, a statement said.

Advent has invested or committed to invest USD 2.2 billion (approx. Rs 15,800 crore) in seven companies across the healthcare industry in 2019. The acquisition in BSV is a part of it and further expands its depth and commitment to the sector globally.

Advent has also invested or committed more than USD 600 million (approx Rs 4300 crore) in five Indian businesses this year in sectors such as healthcare, consumer products and financial services, the statement said.

“Bharat Serums has a differentiated portfolio of biotech and biological offerings in high-growth segments,” said Pankaj Patwari, a Director at Advent International in Mumbai.

“We are also excited about the company’s robust R&D pipeline, which offers the potential to capture whitespace both in India and global markets,” he added.

BSV, setup in 1971 in Mumbai, is one of the fastest-growing biopharmaceutical companies in India making products in critical care and emergency medicines in India and other emerging markets. BSV researches, develops, manufactures and markets specialized injectable medicines with a portfolio focused on biotech and biological products.

Bharat V. Daftary, a member of the founding family of Bharat Serums, said, “Our business has demonstrated consistent product innovation and revenue growth, and with this partnership we will seek to further expand our presence in select large emerging markets. We look forward to the resources and expertise Advent will offer BSV.”

“BSV represents an exciting mix of innovative products and technologies, a dedicated team and strong market presence,” said Gautam V Daftary another member of the founding family of Bharat Serums. “The partnership with Advent is another major milestone in BSV’s growth story.”

Advent has been investing in India since 2007. During this time, it has deployed more than $1.5 billion in 11 companies with headquarters or operations in the country.

In addition to BSV, new and follow-on investments this year include Aditya Birla Capital, the holding company for the financial services businesses of Aditya Birla Group; DFM Foods, a leading producer of packaged snack foods; and Enamor and Dixcy Textiles, two leading innerwear brands.

Innergize Solutions acted as Strategic Advisor to BSV on the transaction.

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