Advent International to purchase significant stake in Suven Pharma, plans merger with Cohance Lifesciences

As part of the transaction, Advent will also be making an open offer to acquire an additional 26% of the outstanding equity shares of the company from the public shareholders.

Published On 2022-12-26 09:45 GMT   |   Update On 2022-12-26 11:09 GMT
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Mumbai: Advent International has entered into a definitive agreement toacquire significant stake in Suven Pharmaceuticals from the Jastifamily, subject to regulatory approvals and conditions. Post the completion of this acquisition, Advent intends to explore the merger of its portfolio company, CohanceLifesciences with Suven, to build an end-to-end CDMO and merchant APIplayer servicing the pharma and specialty chemical markets.

The merger will be evaluated bythe board taking into consideration the strategic rationale and accretiveness to Suven's publicshareholders and will be subject to regulatory approvals and other customary approvals.

As part of the transaction, Advent will also be making an open offer to acquire an additional 26%of the outstanding equity shares of the company from the public shareholders.

"We are delighted to bring Advent into Suven Pharma as a strategic investor. We have built abusiness with industry-leading growth & margins. We have cultivated excellent relationshipswith multiple global innovator companies backed by deep R&D capabilities and demonstratedtrack record of execution and delivery excellence. Advent is the ideal partner for us, with deepexpertise in healthcare, and a global network of professionals and experts. Their experienceand resources will launch the next phase of growth for Suven pharma. This move will benefitSuven platform immensely. The proposed collaboration with Cohance is a win-win for Suvenand its public shareholders. It will help us offer a broader set of services and multi-sites to ourcustomers" said Mr. Venkateswarlu Jasti, Managing Director at Suven Pharmaceuticals Ltd.

"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 planto build on Suven's capabilities and make it one of the global leaders in the CDMO space. Weintend to explore a merger of Cohance with Suven in a manner which is synergistic andaccretive for Suven's shareholders." said Ms. Shweta Jalan, Managing Partner and Head ofAdvent International in India.

"Our vision for Suven is to build a $1 billion global leader, by executing effectively on theproduct pipeline, building new marquee customers, turbo-charging business development,and scaling up manufacturing and R&D. We will also look at acquiring synergistic businessesglobally, to further build capabilities and gain new customer access," said Mr. Pankaj Patwari,Managing Director at Advent International.

Cohance Lifesciences, wholly owned by Advent, was formed inNovember 2022 to create a new brand identity for its CDMO and API platform, with anintention of bringing together three Advent portfolio companies – RA Chem Pharma, ZCLChemicals, and Avra Laboratories. Cohance's two business units, CDMO and API+, cater todevelopment and manufacturing for pharma and specialty chemical innovators, and global generic companies with complex product requirements respectively. It has sevenmanufacturing facilities. Cohance recorded a total proforma revenue of ~INR 1,280 crores (FY2021-22) and has grown at a market-leading>21% CAGR organically in the last two years.
"The potential combination of Suven and Cohance has the ability to become a powerhouseoperating across the pharmaceutical value chain. The combined entity will have three massivegrowth vectors across pharma CDMO, speciality chemicals, and merchant API, each of whichhave strong macro tailwinds. There are strong front-end and operational synergies betweenthe two businesses which will be leveraged" added Mr. Pankaj Patwari.
Advent has been investing in India since 2007 and founded its Mumbai office in 2009.Currently, it has invested/committed over $3.2 billion across 14 companies with headquartersor operations in India in sectors such as business and financial services, retail, consumer andleisure, healthcare, industrial, and technology. Previous healthcare investments in India alsoinclude Bharat Serums and Vaccines. Globally, Advent has invested over US$ 10.4 billionacross 51 companies in healthcare.Advent was advised on this transaction by Kotak Investment Banking and Avendus Capitalwhile Suven had Barclays Bank Plc as their exclusive financial advisor.

Read also: Suven Life Sciences plans to raise up to Rs 400 crore through rights issue

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