Competition Commission Clears Mankind Pharma's Deal To Buy Bharat Serums and Vaccines
Moneylife Digital Team 02 October 2024
The competition commission of India (CCI) has approved the acquisition of Bharat Serums and Vaccines Ltd (BSV) by Mankind Pharma Ltd. The proposed transaction involves the acquisition of 100% shareholding of Bharat Serums and Vaccines by Mankind Pharma.
 
In July, Mankind signed an agreement to buy a 100% stake in Bharat Serums and Vaccines from private equity (PE) firm Advent International for about Rs13,630 crore. 
 
Advent International, which had acquired BSV in 2019 in two transactions, had put the company on the block late last year. The process has been going on for quite a while, with several PE firms and pharmaceutical companies showing interest and submitting non-binding bids.
 
Mankind Pharma pipped the combination of Baring Private Equity and Abu Dhabi Investment Authority which had bid slightly over Rs13,000 crore.
 
"Mankind's strategic acquisition of BSV with branded speciality pharma portfolio across India and Emerging Markets presents immense growth potential and will add to the existing growth velocity of Mankind," said Sheetal Arora, chief executive officer (CEO) and whole-time director of Mankind Pharma in July.
 
In a statement, she pointed out that BSV's business would be synergistic with Mankind's product portfolio, expansive field force, and doctor coverage. "We are confident this would correspond to the expansion of EBITDA margins and thereby solidify our position as a company known for marketing innovative and specialized offerings."
 
In FY23-24, BSV reported revenues of Rs1,723 crore, up 20%, with adjusted EBITDA (earnings before interest, taxes, depreciation and amortisation) margins of 28%. The business has grown at 21% revenue annually over the past three years.
 
Bharat Serums is a biopharmaceutical company that makes products for women's healthcare, assisted reproductive treatment, critical care, and emergency medicine. It has RD facilities in India, Ukraine, Germany, the Philippines and Malaysia, manufacturing facilities in India and Germany and presence in over 70 countries.
 
Mankind Pharma's domestic pharma business product portfolio spans formulations across acute and therapeutic areas.
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