Actis and Sequoia look to divest from FMCG firm Paras Pharmaceuticals
PE firms Actis Capital and Sequoia Capital are reportedly set to sell their 70% stake in Indian FMCG firm Paras Pharmaceuticals for as much as $800 million.
According to reports, the firms first considered selling their controlling shares after pharmaceutical majors GlaxoSmithKline, Sanofi-Aventis and Abbott Laboratories voiced their interest in the asset. Paras Pharmaceuticals, which produces an assortment of over-the-counter personal care and healthcare products, will continue to be 30% backed by its original promoters, the Patel family, and Morgan Stanley is expected to advise the company on the process. The sale may come as early as 1H 2011.
Paras' over-the-counter products reportedly saw FY09 revenue of INR400 crore ($86 million) and is poised to see INR500 crore ($107.6 million) in revenue FY10. With the estimated sale price, local reports further suggest that Actis and Sequoia could experience as much as 30x EBITDA on their investments.
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