Advent International acquires around 50% stake in Suven Pharmaceuticals
- ByStartupStory | December 26, 2022
Advent International, a global private equity investor, has entered into a definitive agreement with the Jasti family to acquire a significant stake in Suven Pharmaceuticals (“Suven Pharma” or “Suven”), subject to regulatory approvals and conditions.
As per latest reports, around 50% of the stake has been sold at a market valuation of Rs. 12,600 crore
As part of the transaction, Advent will make an open offer to acquire an additional 26% of the company’s outstanding equity shares from public shareholders.
Venkateswarlu Jasti, Managing Director at Suven Pharmaceuticals Ltd said, “We are delighted to bring Advent into Suven Pharma as a strategic investor. We have built a business with industry leading growth & margins. We have cultivated excellent relationships with multiple global innovator companies backed by deep R&D capabilities and demonstrated track record of execution and delivery excellence. Advent is the ideal partner for us, with deep expertise in healthcare, and a global network of professionals and experts. Their experience and resources will launch the next phase of growth for Suven pharma. This move will benefit the Suven platform immensely. The proposed collaboration with Cohance is a win-win for Suven and its public shareholders. It will help us offer a broader set of services and multi-sites to our customers.”
Shweta Jalan, Managing Partner and Head of Advent International in India said,“We are extremely pleased with this win-win transaction. We believe that Suven is a world class CDMO with a credible track record and a great roster of clientele to its name. We plan to build on Suven’s capabilities and make it one of the global leaders in the CDMO space. We intend to explore a merger of Cohance with Suven in a manner which is synergistic and accretive for Suven’s shareholders.”
Suven Pharma, which was spun off from its parent company, Suven Life Sciences, in 2020, is a market leader in the India pharma CDMO space, with strong growth (>20% CAGR over the last four years) and profitability (>43% EBITDA margins). Suven works with innovators 90% of the time and follows the customer from Phase 1 to commercialization. With over 100 active projects, it has a strong pipeline of Phase 3 and late Phase 2 molecules.
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