Everstone exits India's Rubicon to General Atlantic
General Atlantic has acquired Indian pharmaceutical developer Rubicon Research. Everstone Group, the company's controlling shareholder, will realize a 4.5x return on the deal.
Everstone acquired a 70% stake in Rubicon for INR2.2 billion ($32.9 million) in 2016 through a combination of a direct investment in the company and shares held by Kotak Private Equity and other shareholders. The size of the deal has not been disclosed, but the return implies a transaction value of around INR9.9 billion. According to a release, the exit will generate an IRR of 92%.
Rubicon is focused on research and manufacturing of branded and specialty generic medications, along with over-the-counter products, primarily for US and Canadian pharmaceutical providers. It operates a research facility and manufacturing center in India with a combined floor area of almost 200,000 square feet, along with a business development and regulatory office in New Jersey for easier access to North American regulators.
During Everstone’s holding period the company claims to have grown its profits more than 5x through the approval and launch of multiple products. Everstone worked with the promoters to develop their strategy and scale the manufacturing network, and also recruited US pharmaceutical industry specialists to help Rubicon with market feasibility studies.
With more than $5 billion in assets under management, Everstone invests across a range of strategies including private equity, real estate, green infrastructure, and venture capital, with a focus on India and Southeast Asia. The firm is currently investing its third fund, which closed at $730 million in 2015.
Everstone’s healthcare investments include Everlife, a platform with several Southeast Asian portfolio companies that recently made its first commitment in India, backing medical device manufacturer CPC Diagnostics. The firm has also invested in Indian nutraceuticals ingredient supplier OmniActive Health Technologies and hospital operator Global Hospitals, which it exited to IHH Healthcare in 2015 for a 3x return.
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