KKR to Divest its Full Stake
Gland Pharma Limited ("Gland" or "The Company"), a leading Indian
pure-play generic injectable pharmaceutical products company, today
announced the signing of a definitive agreement under which Shanghai
Fosun Pharmaceutical (Group) Co. Ltd. (together with its subsidiaries,
"Fosun Pharma"), a leading Chinese health care provider (stock code:
600196.SH,02196.HK), will acquire an approximate 86% stake in Gland for
up to US$1.26 billion.
This Smart News Release features multimedia. View the full release here:
Based on the agreement, Fosun Pharma will purchase all shares of Gland
owned by KKR Floorline Investments Pte. Ltd. (together with its
affiliates, "KKR") in addition to shares purchased from other
shareholders of The Company. P.V.N. Raju, Founder of Gland, and his son,
Dr. Ravi Penmetsa, will continue to be on the Board, and Dr. Penmetsa
will continue as Managing Director and CEO. The family will retain a
stake in Gland.
Dr. Penmetsa said, "This transaction truly demonstrates the strong
expertise of our people and the potential for Indian companies to
improve health care in markets worldwide. We look forward to continuing
our work to research, develop and provide medical products from India
and continue to add capacity at our facilities."
KKR invested in Gland in 2014. Since then, the company has seen its
capacity and profit grow significantly. This was achieved, in part, by
Gland's investment into a new manufacturing plant, significant
optimization of existing facilities, enhanced R&D spend and focus, and
Gland's ability to file for and own further intellectual property.
"We have benefited from the experience of KKR, which brought the skills
and expertise that enabled Gland to grow and develop as a multinational
leader in health care. We achieved improved performance and look forward
to building upon that foundation," Dr. Penmetsa added.
Following the close of the transaction, Gland will remain headquartered
"With a track record of achieving greater scale, innovating world-class
products and operating to global best practices, KKR takes pride in its
relationship with Gland and in The Company's support of the ‘Make in
India' campaign. We are confident Fosun Pharma will experience continued
success as it invests and supports Gland's next stage of growth," said
Joseph Y. Bae, Member of KKR and Managing Partner of KKR Asia.
Fosun Pharma is a leading researcher, developer, producer and retailer
of biopharmaceutical products worldwide.
Mr. Chen Qiyu, Chairman of Fosun Pharma said, "We're pleased to
incorporate Gland into the Fosun Pharma family. Gland's management team,
along with support from KKR, has done a tremendous job in growing its
business to become the global leader in the generics injectables
industry. The deal will greatly strengthen Fosun Pharma's global
presence and accelerate our speed of internationalization. It will
enable us to provide more high-quality products and services to our
patients worldwide. Fosun Pharma is dedicated to implementing our
investment model of ‘Combining China's Growth Momentum with Global
Resources' with the win-win cooperation with Gland."
Simpson Thacher & Bartlett and Cyril Amarchand Mangaldas provided legal
advice to KKR and Gland. Jefferies acted as exclusive financial advisor
to Gland and KKR. The transaction is subject to customary regulatory
Established in 1978 and based in Hyderabad, Gland develops and
manufactures generic injectables for use in nearly 90 countries on five
continents, with a focus on the Indian and US markets. Since 1996, The
Company has maintained a relationship with the Vetter family in Germany,
and by 2003, Gland was the first company in India to get US Food and
Drug Administration ("FDA") approval for pharmaceutical liquid
injectable products. Gland's world-class manufacturing facilities have
also received approvals from a number of key medical regulatory agencies
around the globe including those in Australia, Germany and the UK, in
addition to the World Health Organization ("WHO").
KKR is a leading global investment firm that manages investments across
multiple asset classes including private equity, energy, infrastructure,
real estate, credit and hedge funds. KKR aims to generate attractive
investment returns by following a patient and disciplined investment
approach, employing world-class people, and driving growth and value
creation at the asset level. KKR invests its own capital alongside its
partners' capital and brings opportunities to others through its capital
markets business. References to KKR's investments may include the
activities of its sponsored funds. For additional information about KKR
& Co. L.P. (NYSE:KKR), please visit KKR's website at www.kkr.com and
on Twitter @KKR_Co.
View source version on businesswire.com: http://www.businesswire.com/news/home/20160728005902/en/
Anita Davis, +852-3602-7335
(for KKR India)
Siddharth Panicker, +91-9820-857-522
Source: KKR & Co. L.P.
News Provided by Acquire Media