New York/Mumbai, December 19, 2013. Today, Blackstone announced that one of its affiliated private equity entities based in Mauritius had entered into an agreement to sell its equity stake in Pune-based Emcure Pharmaceuticals Limited to Bain Capital. Emcure is engaged in developing, manufacturing and marketing a well-diversified range of pharmaceutical products globally. It is currently ranked as the 14th largest pharmaceutical company (Source: IMS Health India, Secondary Stockist Audit (“SSA”), March 2013) in India in terms of market share based on the domestic sales of pharmaceutical products.
The transaction is subject to conditions under contract and law including approvals such as Foreign Investment Promotion Board (FIPB) approval.
Satish Mehta, Emcure’s Managing Director and Chief Executive Officer, said, “Blackstone has been a valuable strategic partner for us over the last few years. In addition to providing growth capital to expand our business multi-fold, they also shared strategic insights to manage our fast growing business effectively. We are delighted that we have lived up to the faith reposed in us by Blackstone. We are also delighted to welcome a prestigious firm like Bain Capital and look forward to reaching greater heights in partnership with them.”
Amit Dixit, Co-Head of Private Equity at Blackstone Advisors India Pvt Ltd and a Director on Emcure’s board, said, “Emcure was the first private equity investment by a Blackstone managed fund in India. Since our investment, the company has significantly strengthened its position in the Indian pharmaceutical market and has established a strong presence in the US and other semi-regulated markets. Thanks to its management team, the company’s revenues and profits grew significantly during our investment horizon. Going forward, we believe Emcure will continue to build on its strong platform and continue its rapid growth trajectory.”
Amit Chandra, Managing Director, Bain Capital Advisors (India) Pvt Ltd, an advisor to Bain Capital, said, “Emcure is strongly positioned with a well-diversified range of products. Its strong management team, under the leadership of Mr. Satish Mehta, has built high quality chemistry skills, and robust marketing and distribution capabilities, that gives Bain Capital managed funds the conviction that Emcure is capable of continued strong growth and value creation in the years ahead.”
Emcure is a fast growing Indian pharmaceutical company engaged in developing, manufacturing and marketing a broad range of pharmaceutical products globally. Our core strength lies in developing and manufacturing differentiated pharmaceutical products in-house, which we commercialize through our marketing infrastructure across geographies and relationships with multi-national pharmaceutical companies. We focus our research and development efforts on developing a portfolio of differentiated products across several platforms, including chiral molecules and biosimilars, and novel drug delivery systems.
Blackstone is one of the world’s leading investment and advisory firms. We seek to create positive economic impact and long-term value for our investors, the companies we invest in, the companies we advise and the broader global economy. We do this through the commitment of our extraordinary people and flexible capital. Our alternative asset management businesses include the management of private equity funds, real estate funds, hedge fund solutions, credit-oriented funds and closed-end funds. Blackstone also provides various financial advisory services, including financial and strategic advisory, restructuring and reorganization advisory and fund placement services. Further information is available at china.blackstone.com. Follow us on Twitter @Blackstone.
About Bain Capital
Bain Capital (www.baincapital.com) is a global private investment firm that manages several pools of capital including private equity, venture capital, public equity, credit products and absolute return with approximately $70 billion in assets under management. Since its inception in 1984, Bain Capital managed funds have made private equity investments in more than 260 companies worldwide. Bain Capital has a distinctly value-added approach to investing, with a strong emphasis on supporting management teams to drive growth, strategic and operating improvements.
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Emcure Pharmaceuticals Limited (the “Company”) is proposing, subject to receipt of requisite approvals, market conditions and other considerations, to make an initial public offering of its equity shares (the “Equity Shares”) comprising a fresh issue and an offer for sale by certain existing shareholders of the Company and has filed a draft red herring prospectus (the "DRHP") with the Securities and Exchange Board of India ("SEBI"). The DRHP is available on the website of SEBI at www.sebi.gov.in; on the websites of the stock exchanges at www.nseindia.com and www.bseindia.com; and on the respective websites of the book running lead managers at www.dspml.com, www.idfccapital.com and www.morganstanley.com/indiaofferdocuments. Investors should note that investment in the Equity Shares involves a high degree of risk and for details relating to the same, see the section "Risk Factors" of the DRHP. Potential investors should not rely on the DRHP for any investment decision.
The Equity Shares have not been and will not be registered, listed or otherwise qualified in any other jurisdiction outside India and may not be offered or sold, and Bids may not be made by persons in any such jurisdiction, except in compliance with the applicable laws of such jurisdiction. The Equity Shares have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable U.S. state securities laws. Accordingly, the Equity Shares are being offered and sold (i) within the United States to U.S. QIBs in reliance on Rule 144A under the Securities Act and (ii) outside the United States in reliance on Regulation S under the Securities Act.