Samara buys Adcock Ingram India for $23m
Samara Capital has paid INR1.51 billion ($22.7 million) for the Indian division of South African drug maker Adcock Ingram Holdings.
The deal will see Samara take a 100% stake in Adcock Healthcare, which operates the Indian pharmaceutical marketing and distribution operations for the parent company. According to a statement, the sale does not include Adcock's regulatory services business, which provides back office support in the areas of regulatory services, quality assurance, IT, and R&D. This division will be separated from Adcock Healthcare.
Adcock said that it decided to sell the Indian business because it "does not meet the company's current investment criteria." Adcock Healthcare recorded a net profit of ZAR2.1 million ($139,000) for the six months ended December 2015. The parent company indicated last August that it would put the Indian division up for sale following continuing losses in its Cosme Farma subsidiary.
The sale must be approved by India's Foreign Investment Promotion Board, and is expected to close by the end of July.
Samara made its investment from its second fund, which launched in 2012. The fund provides growth capital to Indian companies, focusing mainly on the technology and healthcare sectors. Past investments include the Hyderabad-based Asian Institute of Gastroenterology and a 45% stake in the Indian arm of US data storage firm Iron Mountain.
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