Avantor Performance Materials Holdings SA has entered into a definitive agreement to acquire RFCL Limited from ICICI Venture Funds Management Company Ltd, a subsidiary of India's second-largest bank ICICI.
Avantor identified RFCL as an attractive target to build on its current presence in the laboratory and pharmaceutical markets in India, a press release issued here today stated.
The company, previously known as Mallinckrodt Baker, was acquired by an affiliate of New Mountain Capital, LLC in August 2010.
Avantor and its subsidiaries manufacture and market high-performance chemistries and materials around the world under two well-known and respected brand names, JT Baker and Mallinckrodt Chemicals.
Avantor and New Mountain Capital will provide RFCL with significant financial and strategic resources to support their growth initiatives.
“We believe that the combined Avantor and RFCL business will be positioned as a leading player in the laboratory, pharmaceutical, electronic materials and diagnostics industries in India,” Avantor's Chairman and Senior Advisor to New Mountain Capital, Raj Gupta, said.
Avantor has around $430 million in annual sales. “We are very pleased with this transaction as it will bring the best of opportunities for RFCL and its management and employees for the future,” ICICI Venture's Executive Director Prashant Purker said.
“This type of outcome is consistent with ICICI Venture's way of investing where we create value for all stakeholders,” he said.
In 2009, RFCL sold its animal health business to Pfizer Pharmaceuticals India Pvt Ltd. With this transaction, ICICI Ventures has effected a complete exit from its investment in RFCL.
“We are very enthusiastic about the prospect of joining Avantor,” RFCL's Managing Director Sushil Mehta said.
The company sees significant growth opportunities resulting from the combination of Avantor and RFCL, Mehta said. It has around $50 million of sales.
Lazard India acted as the sole financial advisor to Avantor and New Mountain Capital while Fried, Frank, Harris, Shriver & Jacobson LLP and AZB & Partners acted as legal advisors to Avantor and New Mountain Capital.
N M Rothschild and Sons (India) acted as the sole financial advisor to ICICI Venture for this transaction. Hemant Sahai Associates acted as sole legal advisor to ICICI Venture and RFCL Limited.
RFCL Ltd covers the expanse of life sciences industries including pharmaceuticals, bio-technology, R&D laboratories, life-sciences, in vitro diagnostic facilities in clinical labs and hospitals through its two Strategic Business Units–Rankem and Diagnova.
ICICI Venture presently has funds under management of about $2 billion.
Source: Economic Times