Everstone Capital, the private equity arm of the Everstone Group, has acquired a controlling stake in Softgel Healthcare (SHPL) for an undisclosed sum, the PE firm announced on Wednesday.
The Singapore-headquartered firm said the acquisition will aim to scale, diversify, and globally recognized contract research, development, and manufacturing organization in India with the support of the strategic resources of Everstone.
A person familiar with the development told VCCircle that Softgel is valued at $125 million and clocks over Rs 100 crore Ebitda (earnings before interest, tax, depreciation and amortization). The company did not disclose the valuation.
Puncham Mukim and Dr Arjun Oberoi, managing directors, Everstone Capital will join the board of SHFL post this deal.
Chennai-headquartered SHPL is part of the pharmaceutical contract manufacturing company, Madras Pharma Group and deals in pharma, nutraceuticals and over-the-counter (OTC) products. It has 8 manufacturing facilities covering all dosage forms. SHPL specializes in the research, development and manufacturing of soft gelatine capsules and probiotics.
SHPL has a customer base across the Americas, Africa, Asia and India with over 80% of its sales being in exports. The company has a manufacturing facility in Chennai, conforming to globally recognized certifications and registrations such as USFDA, TGA, EU-GMP and Health Canada.
"The company, with its R&D capabilities and ability to manufacture products in advanced dosage forms, is well positioned to be a global leader in the CDMO segment. We believe that Everstone's value creation playbook will help SHPL realize its global goals and propel the company into its next phase of growth," said Sameer Sain, co-founder and chief executive officer, Everstone Group.
Veda Corporate Advisors was the exclusive financial adviser to SHPL and its shareholders.
Everstone Capital broadly invests in sectors such as pharma and healthcare, consumer, and financial services, in addition to technology services companies. The PE firm raised $730 million for the third fund in 2015, which invested in pharma, healthcare, financial services, consumer and IT services businesses.
In July, VCCircle reported, Everstone Capital is looking to exit a bet in the IT space and is currently in talks with strategic suitors to close the transaction at around $200 million.
