Platinum Equity buys controlling stake in Inventia Healthcare's OSD arm

The acquisition of the Mumbai-headquartered pharmaceutical business was led by Platinum Equity's Asia investment team in Singapore.

August 30, 2024

US private equity (PE) firm Platinum Equity has acquired a controlling stake in Inventia Healthcare’s core Oral Solid Dosage (OSD) business from PE firm Invascent’s India Life Sciences Fund III, New York Life Investment Management's Jacob Ballas India Fund III and affiliates of the company's founding Shah family.

The Shah family is retaining a minority stake in Inventia. Invengene and Nutriventia, the injectables and nutraceuticals businesses, respectively, are not part of the transaction and are being retained separately by the Shah family, according to an August 30 media release. 

Financial terms of the acquisition or the size of the stake were not disclosed.

Headquartered in Mumbai, Inventia was jointly founded in 1985 by the company’s late chairman and managing director Janak Shah and executive director Maya Shah. Inventia has over 100 customers supplying both semi-finished and finished OSD formulations for both regular and value-added generics. Inventia’s partners include global and local pharmaceuticals companies that sell in more than 40 countries across North America, South America, Europe, Southeast Asia, Middle East and Africa.

Inventia operates a manufacturing facility in Ambernath and a research and development facility in Thane in Maharashtra, India. The company’s manufacturing platform is accredited by the US Food and Drug Administration (FDA), the UK's Medicines and Healthcare products Regulatory Agency (MHRA) and other  regulatory authorities.

“This investment marks a significant milestone in the journey of Inventia. As founders and long-standing stewards of the company, we are thrilled to see Platinum Equity's investment in our core OSD business,” said Maya Shah and the late Janak Shah in a joint statement prior to Janak Shah’s recent passing.

They added: “This partnership will harness Inventia's strengths and Platinum's operational expertise to propel us to new heights. We remain deeply committed to our mission and are confident that this collaboration will drive further innovation and growth. Our vision for Inventia has always been to provide high-quality, accessible pharmaceutical products, and with Platinum Equity, we believe this vision will only grow stronger.”

The acquisition is being led by Platinum Equity’s Asia investment team based in Singapore.

“We believe Inventia is a strong platform for growth in a fragmented market, and our goal is to create a larger, more diversified B2B business focused on the attractive but underserved emerging markets,” said Platinum Equity managing director Amit Sobti, in a statement. 

Sobti continued: “We are excited to build upon the strong foundation set by the Shah family by bringing in our operational and financial resources to further institutionalise the company and set it up for success on a significantly greater scale. Inventia’s current product pipeline can drive strong organic growth over the foreseeable future, which we will look to enhance through acquisitions, with an emphasis on broadening the company’s product portfolio and capabilities.”

Kotzubei said in addition to seeking add-ons for Inventia, Platinum Equity will continue to source platform deals in India that fit the firm’s investment strategy.

“The buyout market in India continues to evolve and there are more opportunities available today that fit our approach,” he explained. “There are more mature companies with more need for operational support, including founder or family-owned businesses seeking a partner who can not only provide capital, but also operational expertise. We have a lot of experience in those situations.”

Barclays served as exclusive financial adviser to Platinum Equity on the transaction. Latham Watkins served as international legal counsel alongside Trilegal as India legal counsel for Platinum Equity. Kirkland & Ellis provided financing counsel to Platinum Equity on the transaction.

Rothschild & Co and Stifel Nicolaus India (formerly Torreya Partners) served as financial advisers to the sellers. Quillon Partners served as legal counsel to the sellers on the transaction.

FinanceAsia has reached out for more information.

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