Global Private Equity Investor Advent International announced on Monday that it is acquiring a 50.1 Per cent stake in Suven Pharmaceuticals for Rs. 6,313 crores and was planning to merge with its portfolio company Cohance Lifescience. The promoter Jasti family will hold a 9.9 per cent stake in the firm if the deal gets done.
Advent will also launch an open offer for another 26 per cent stake at Rs 495 per share. If the open offer is fully subscribed, Advent will have to pay another Rs 3,276 crore, and the total deal size would jump to Rs 9,589 crore for a 76.1 per cent stake.
Managing Director of Suven Pharma Venkateswarlu Jasti said on the conference call ━ “the deal was expected to be closed in five to six months, and the details of the proposed merger with Cohance were still being worked out, including what could be the swap ratio.”
Suven Pharmaceuticals was part of Suven Life Sciences, which was demerged in 2020. It is now one of the major players in India’s pharma Contract Development and Manufacturing (CDMO) space. It has attained a growth of over 20 per cent Compound Annual Growth Rate (CAGR) over the past 4 years and profitability of over 43 per cent EBITDA (Earning Before Interest, Taxes, Depreciation, and Amortisation) margins.
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Venkateshwarlu Jasti is expected to be the Managing Director of the company and will provide consultancy services as Chief Advisor after the deal is completed. The company has a strong base in the pharmaceutical sector and has over 100 active projects. Advent intends to explore more with Cohance and build a leading end-to-end CDMO. Jasti also said they were delighted to bring Advent into Seven Pharma as a strategic investor.
