Private Equity firms eye acquisition of Indian pharma company, Inventia Healthcare

INDIA — Multiple global and domestic private equity funds, including Apax Partners, TPG Capital, TA Associates, and Kedaara Capital, are reportedly in initial talks about acquiring Inventia Healthcare, an Indian pharmaceutical company headquartered in Mumbai, The Economic Times reported.

These discussions indicate the early phases of negotiations for the potential acquisition of Inventia Healthcare by the mentioned private equity funds. The potential deal is said to value Inventia Healthcare at ₹2,600 crore (US$ 313 million).

Inventia Healthcare specializes in manufacturing pharmaceutical products, including microencapsulation, NDDS (Novel Drug Delivery Systems), ANDA (Abbreviated New Drug Application), and regulatory compliance.

Existing private equity investors, InvAscent Capital and Jacob Ballas, are reportedly planning to exit their investments in the company. The sale process is being managed by Stifel Financial Corp (Torreya) and Rothschild.

While the promoter family is expected to retain a minority stake and continue to operate the business, first-round bids for the acquisition are anticipated in early November.

As of now, InvAscent Capital and Jacob Ballas collectively hold about 40% of Inventia, with the remaining ownership held by Promoter Janak Shah and family.

Inventia Healthcare, founded in 1985, focuses on developing value-added oral dosage formulations through contract manufacturing for various pharmaceutical companies in India and worldwide.

The company is projected to generate revenues of ₹700 crore (US$84.3 million) with an Ebitda (Earnings Before Interest, Taxes, Depreciation, and Amortization) ranging from ₹150-175 crore (US$18.1 million-21.1 million) for FY24, according to sources.

Inventia conducts its research and development activities in Thane, Maharashtra, while its manufacturing operations take place at an Ambernath facility that holds approvals from the US FDA and UK MHRA (Medicines and Healthcare products Regulatory Agency).

The company’s reach extends to various global markets, including the US, UK, SAARC countries, and Latin American countries.

Inventia Healthcare boasts a legacy of over three decades in the pharmaceutical sector and offers a portfolio of 340 products, comprising finished and semi-finished products catering primarily to therapeutic areas such as gastrointestinal, diabetic, central nervous system, and others.

Notable competitors and alternatives in the pharmaceutical industry for Inventia Healthcare include companies like Amgen, Takeda, and Emergent BioSolutions.

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