Advent International acquires significant stake in Suven Pharmaceuticals, launches open offer


Advent International, a global private equity investor, has entered into a definitive agreement to acquire a significant stake in Suven Pharmaceuticals(“Suven Pharma” or “Suven”) from the Jasti family, subject to regulatory approvals and conditions. Post the completion of the acquisition, Advent intends to explore the merger of its portfolio company, Cohance Lifesciences (“Cohance”) with Suven, to build a leading end-to-end CDMO and merchant API player servicing the pharma and specialty chemical markets.

The merger will be evaluated by the board taking into consideration the strategic rationale and accretiveness to Suven’s public shareholders and will be subject to regulatory approvals and other customary approvals.

As part of the transaction, Advent will also be making an open offer to acquire additional 26% of the outstanding equity shares of the company from the public shareholders.

Venkateswarlu Jasti, Managing Director at Suven Pharmaceuticals Ltd said,“We are delighted to bring Advent into Suven Pharma as a strategic investor. We have built a business with industry leading growth & margins. We have cultivated excellent relationships with multiple global innovator companies backed by deep R&D capabilities and demonstrated track record of execution and delivery excellence. Advent is the ideal partner for us, with deep expertise in healthcare, and a global network of professionals and experts. Their experience and resources will launch the next phase of growth for Suven pharma. This move will benefit Suven platform immensely. The proposed collaboration with Cohance is a win-win for Suven and its public shareholders. It will help us offer a broader set of services and multi-sites to our customers.”

Shweta Jalan, Managing Partner and Head of Advent International in India said,“We are extremely pleased with this win-win transaction. We believe that Suven is a world class CDMO with a credible track record and a great roster of clientele to its name. We plan to build on Suven’s capabilities and make it one of the global leaders in the CDMO space. We intend to explore a merger of Cohance with Suven in a manner which is synergistic and accretive for Suven’s shareholders.”

Pankaj Patwari, Managing Director at Advent International said,“Our vision for Suven is to build a $1 billion global leader, by executing effectively on the product pipeline, building new marquee customers, turbo-charging business development, and scaling up manufacturing and R&D. We will also look at acquiring synergistic businesses globally, to further build capabilities and gain new customer access.”

“The potential combination of Suven and Cohance has the ability to become a powerhouse operating across the pharmaceutical value chain. The combined entity will have three massive growth vectors across pharma CDMO, specialty chemicals and merchant API, each of which have strong macro tailwinds. There are strong front-end and operational synergies between the two businesses which will be leveraged” added Pankaj Patwari.

Suven Pharma, which was demerged from its parent entity, Suven Life Sciences, in 2020, is one of the leaders in the India pharma CDMO space with high growth (>20% CAGR over last 4 years) and profitability (>43% EBITDA margins). Suven does ~90% of its business with innovators and follows the customer from Phase 1 to commercialization. It has a strong pipeline of Phase 3 and late Phase 2 molecules with 100+ active projects.

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