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Monday, May 11, 2020

PE firm Carlyle to acquire up to 74 per cent stake in SeQuent Scientific for Rs 1,580 crore


American private equity investor, the Carlyle Group, will acquire up to a 74 per cent stake in animal health focused pharmaceutical company, SeQuent Scientific Ltd.

SeQuent is an animal healthcare company that operates globally and offer active pharmaceutical ingredients (APIs), formulations, and analytical services in around 100 countries, with more than 1,700 employees and manufacturing operations in India, Spain, Turkey, Germany and Brazil.

Carlyle will acquire a maximum of 183 million shares from the promoters and a mandatory open offer at Rs 86 (US$ 1.22) per share. The total consideration for the 74 per cent stake will make to about Rs 1,580 crore (US$ 224.15 million).

Around 44.92 per cent stake by promoters will be sold for this transaction. Also, under certain conditions, Carlyle has agreed to buy the 5.69 per cent stake held by existing private equity investor Ascent Capital. The deal is supposed to be done by the October quarter.

Carlyle's acquisition of the promoter stake will initiate an open offer to acquire up to 26 per cent equity from public shareholders of the company.

The financial advisor for Carlyle was Nomura for this deal and will also be managing the open offer. Law firm Nishith Desai Associates advised Sequent and its promoters.

"SeQuent is led by an experienced management team and has built strong API and formulation businesses that are poised for continued growth in the evolving animal health industry. We will draw on our global network, industry knowledge and operating expertise in healthcare to advise SeQuent on its business expansion strategy, enhance its operations, and help the company drive sales and product innovation," said Mr Neeraj Bharadwaj, managing director at Carlyle Asia Partners

“We see strong growth potential in the global animal health industry, including the livestock segment where SeQuent is operating, thanks to increasing demand for animal protein, rising awareness of food safety, and growing disposable incomes," he added.

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