Everstone buys Indian pharma ingredients player
Everstone Group has acquired a controlling stake in Calibre, an Indian ingredients supplier for the pharmaceutical and nutrition industries, for an undisclosed sum.
The deal is said to value the company at as much as INR10 billion ($135.5 million), according to The Economic Times. Everstone’s latest flagship fund, which includes medical assets in its mandate, closed at $730 million in 2015.
Calibre generates about two-thirds of its revenue by providing chemicals – including iodine derivatives, persulfates, and perchlorates – to drug makers, nutrition industry players, and personal care companies across the US, Europe, and Asia. The company’s manufacturing facility is in Sarigam, an industrial city in the western state of Gujarat.
“This is a game-changer moment for us at Calibre and it marks the transformation of the company from a family-owned to a professional one where we will continue to participate actively,” Ranjit Bhavnani, founder, chairman, and a managing director at Calibre, said in a statement. “We could not have found a better majority partner than Everstone as we together embark on a journey that looks both promising and fulfilling.”
Everstone is one of the largest India-focused investors specializing in rolling up assets within its platforms. The private equity firm’s portfolio includes pharmaceutical products manufacturer Slayback Pharma, pharma distribution platform Ascent Health, and OmniActive, one of the country’s largest nutraceutical ingredients businesses. Last year, Everstone exited pharma developer Rubicon to General Atlantic, generating a return of 4.5x.
Private equity investment in India’s healthcare sector had already surpassed the $2.5 billion mark as of October, compared to only $1.5 billion for all of 2019. Approximately 70% of the capital deployed has gone into pharmaceuticals. Active ingredient suppliers such as Calibre are now said to be transacting at valuations of 7-10x EBITDA, respectively, significantly up from the commonly single-digit ranges of only 3-4 years ago.
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