Fosun Pharma makes offer for India's KKR-backed Gland

In a filing, Fosun said its proposal to existing shareholders would involve the purchase of a 96% stake in Gland. Financial terms of the bid were not disclosed; according to media reports, other potential buyers, including Advent International and Baxter International, have submitted bids that value the company at up to $1.5 billion.

Fosun, which made its proposal through its Fosun Industrial unit, is pursuing Gland in order to enhance its capacity for drug manufacturing and research and development. Gland, founded in 1978, develops and manufactures injectable generic drugs for international markets. It primarily sells to the US and is the first India-based injectable drug maker to be approved by the US Food & Drug Administration.

KKR has been an investor in Gland since 2014, when it paid $191 million for a 38% stake held by Invascent Capital's Evolvence India Life Sciences Fund. The firm paid a further $40 million for a 29% stake in affiliate Gland Celsus held by existing investors.

If the deal goes through, it will mark KKR's second India exit this year. In March, the GP exited Alliance Tire Group, in which it had held a controlling stake since 2013, to Japanese tire manufacturer Yokohama Rubber. Yokohama paid $1.2 billion for the company; KKR's return is believed to have been around 3x.

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• Topics
• South Asia
• Healthcare
• Trade sale
• Buyouts
• India
• Pharmaceuticals
• KKR