Mumbai-based generic oral contraceptive pills maker Famy Care’s promoters and private equity investor AIF Capital, which owns minority stake in the company, are looking to offload up to 75 per cent equity stake in the firm, according to a report by The Economic Times citing sources.
Hong Kong-based AIF Capital, which had invested $40 million in Famy Care in April 2010, is looking to exit its investment in the company and has hired investment bank Credit Suisse to look for buyers, the paper said.
The PE fund is seeking a valuation of $670 million for the company which may in turn value the deal at as much as $500 million, it added.
When contacted by the newspaper, promoters of the company confirmed the appointment of Credit Suisse to advise for an exit route for AIF Capital but denied plans to sell their own stake in the company.
The news report said the process has been kicked off and global drug maker Mylan is among those who have been approached. Notably, Famy Care has a drug development and marketing pact with Mylan to sell its 22 oral and contraceptive drugs in American market.
Mylan has struck large deals in the past including buyout of Matrix Pharma and last year sealed a deal to buy injectable business of Strides Arcolab for $1.75 billion.
Founded by JP Taparia in 1990 from a small manufacturing unit in Mumbai, Famy Care is currently the third-largest over-the-counter contraceptive pills maker. The company, which operates through five plants in Maharashtra, Vapi, Goa and Daman and Diu, offers contraceptive products, including pills, IUDs (intra-uterine devices), injectables, rings for tubal ligation and condoms, with exports to 60 countries.
Famy Care was the last reported India investment by AIF Capital. Previously it had also invested in companies like Bharti Infratel, Bioplus Life Sciences, GPT Steel Industries and Catholic Syrian Bank.
(Edited by Joby Puthuparampil Johnson)