Advent International Acquires Majority Stake in Bharat Serums and Vaccines to Strengthen Presence in Women's Health and Global Emerging Markets

VCBeat (WeChat Official Account: vcbeat) learned from foreign media that on November 18, 2019, the U.S. private equity firm Advent International (“Advent”) announced it had signed a definitive agreement to acquire a majority stake in the Indian biopharmaceutical company Bharat Serums and Vaccines (“Bharat Serums” or “BSV”). The acquisition is expected to be completed by the end of 2019. Specific financial terms were not disclosed.

In this acquisition, Innergize Solutions served as the strategic advisor for the Bharat Serums transaction.

Following the completion of this acquisition, OrbiMed PE and Kotak PE, two private equity firms that previously held minority stakes in Bharat Serums, will fully exit their investments in the company. Meanwhile, the Daftary family, which founded Bharat Serums, will retain a significant equity stake and partner with Advent to drive the company’s next phase of growth.

Bharat Serums, founded in Mumbai in 1971, is one of India’s fastest-growing biopharmaceutical companies. Bharat Serums researches, develops, manufactures, and markets specialized injectable medications, with a product portfolio focused on biotechnology and biological products. Currently, the company holds a leading position in several niche products within the fields of women’s health, assisted reproductive technology, critical care, and emergency medicine.

Since 2007, Advent has been investing in India. Including the acquisition of Bharat Serums, Advent invested or committed to invest $2.2 billion in seven healthcare companies in 2019 to further expand its presence in the global healthcare industry. The company plans to invest or commit more than $600 million this year across five business sectors in India, including healthcare, consumer products, and financial services.

Pankaj Patwari, Director at Advent International, stated: “Bharat Serums possesses a diversified portfolio of biotechnology and biological products in high-growth sectors. We are excited by the company’s robust R&D team, which offers Advent the potential to capitalize on market gaps in India and globally.”

Shweta Jalan, General Manager and India Market Director at Advent, stated, “Leveraging our extensive experience in the pharmaceutical industry and global healthcare platforms, we see significant opportunities to further strengthen the company’s leadership in the Indian market—particularly in women’s health—and expand its influence across global emerging markets. Advent’s robust investment activities in India this year underscore the attractiveness of the Indian market and our commitment to investing in the country.”

Bharat V. Daftary, a member of the founding family of Bharat Serums, stated, “We are delighted to partner with Advent and to continue BSV’s journey in providing innovative and specialized products to the healthcare industry. Our business has demonstrated sustained product innovation and revenue growth, and through this partnership, we will further expand our presence in key large emerging markets. We look forward to Advent bringing its resources and expertise to BSV.”

Dr. Gautam V. Daftary, a member of the founding family of Bharat Serums, stated: “Bharat Serums represents an exciting combination of innovative products and technologies, a dedicated team, and strong market influence. Establishing a partnership with Advent marks another significant milestone in Bharat Serums’ growth story.”

Advent International, founded in 1984 and headquartered in Boston, Massachusetts, USA, is one of the largest and most experienced private equity investment firms globally. The firm possesses extensive expertise in the global healthcare industry. Over the past 35 years, it has invested or committed $9 billion in 48 companies within this sector, including 19 companies engaged in pharmaceutical research and development, manufacturing, and distribution. Advent International maintains offices across four continents and has built a globally integrated team comprising more than 195 investment professionals in North America, Europe, Latin America, and Asia.

(Compiled by Wang Fang)