Advent to buy majority stake in Bharat Serums

MUMBAI: US-based private equity fund Advent International has signed a definitive agreement to acquire a majority stake in Bharat Serums and Vaccines, a leading biopharmaceutical company with presence in India and emerging markets, valuing the company at $500 million (Rs. 3,500 crore).

With this transaction, Orbi-Med and Kotak PE, two PE firms that owned minority stake in Bharat Serums, will fully exit their investments in the company, said a company statement.

The Daftary family, which founded BSV, is retaining a small equity stake in the business and will remain on the board of BSV. Kotak PE and OrbiMed together held 23% stake in the company. “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,” said Bharat V Daftary, CMD, Bharat Serums.

The two year-long sale process had attracted a consortium of Carlyle and Zydus Cadila, as well as ChrysCapitalbacked Mankind Pharma, but Advent became the sole contender in the final stages, ET reported on June 21.

Founded in 1971 in Mumbai, BSV develops, manufactures and markets specialised injectable medicines with a portfolio focused on biotech and biological products. The company has presence across women’s health, assisted reproductive treatment, critical care and emergency medicine.

The company’s revenue stood at Rs. 870 crore in FY19, up from Rs. 705 crore in the previous year. BSV competes with Serum Institute of India, Biological E, Panacea Biotec and Shantha Biotechnics in India. It employees 900 people, and sells products in India and in over 45 countries.

They include plasma derivatives, hormones, equine anti-toxins and serums, antifungals, anaesthetics, cardiovascular and diagnostic products.