Leading investors ChrysCapital and Sequoia and the promoters plan to sell Curatio Healthcare, the Chennai-based pharmaceutical company focused on skincare products, said people aware of the development.
The deal is likely to value the company at Rs 2,000-2,300 crore.
Investment banks Edelweiss and Mape Advisory were hired to run the sale process. Feelers were sent to top buyout funds, including Carlyle, KKR, Blackstone, Advent, Apax Partners, TPG and Kedaara, and domestic pharma firms such as Dr Reddy’s, Torrent and
, said one of the persons, who did not wish to be identified. Venture capital fund Sequoia holds about 33% stake in Curatio Healthcare, ChrysCapital holds about 20% stake and promoters, including GK Ramani, and the management hold the rest.
In 2018, ChrysCapital acquired the minority stake from Fulcrum Venture India in a deal worth Rs 130 crore. Sequoia invested about ₹100 in Curatio Healthcare in 2014.
Curatio Healthcare operates with a network of more than 700 distributors, reaching over 6,000 doctors across India, focusing on dermatologists, pediatricians and gynaecologists, according to a company statement. Its largest brand is Tedibar baby soap.
The company is expected to report revenue of Rs 240 crore for 2021-22, with Ebitda of Rs 75 crore. It has a projection of Rs 350 crore revenue and Rs 100 crore Ebitda for the next fiscal, said one of the persons cited earlier. Spokespersons of Curatio Health, ChrysCapital, Apax Partners, Advent and KKR declined to comment, while emails sent to Sequoia, KKR, Carlyle and TPG remained unanswered till press time.
Curatio Healthcare was set up in 2005 by a team of former executives of American Remedies, which was merged with Dr Reddy’s Laboratories in 1999. The company’s board comprises K Ramanathan, a founder director of American Remedies; GK Ramani, another ex-American Remedies executive and director of Curatio Healthcare, and PV Sankar Dass, former vice-president at Dr Reddy’s Labs. In 2005, angel investor Fulcrum (under Krishna Ramanathan, founder partner) and Ramani acquired a 70% stake. The skincare products market in India was valued at Rs 13,000 crore in 2020, growing at a compound annual growth rate of 11%.
According to Grant Thornton annual deal report, about 40 private equity (PE) investments were made in pharma and healthcare in 2021 and the overall size went up to $2 billion. About 48 mergers and acquisitions deals in the pharma sector, worth $1.6 billion, took place in 2021.
PE investments of $48.2 billion were recorded in 2021, the highest yearly values since 2011.