After Mankind Pharma, Now Blackstone, KKR & Carlyle in Talks to Acquire Bharat Serums & Vaccines

Advent International, the current owner of BSV, aims to sell its entire stake. Non-binding bids are expected by the end of this month.

Following Mankind Pharma’s interest, global private equity firms Blackstone, KKR, and Carlyle have also entered into discussions to acquire Bharat Serums & Vaccines (BSV).

The Indian biopharmaceutical company, valued at over $2 billion, has attracted attention from multiple players.

Advent is reportedly planning to divest its entire stake in Bharat Serum & Vaccines, as per a CNBC-TV18 report. The firm is seeking a valuation of $2 billion for its total stake, with plans to exit since February of this year.

Investment banks Jefferies and JP Morgan are advising Advent on the sale process.

Other interested parties include EQT, Bain Capital, Partners Group, and Permira, but no official comments have been made yet from them.

A Look into the Previous Deals

Advent had initially acquired a 74% stake in Bharat Serums from its erstwhile private equity investors, Orbimed Asia and Kotak PE, and the promoters of the company, the Daftary family, for around $500 million in November 2019.

Later, the PE fund also acquired the remaining 26% stake of the Daftary family.

Established in 1971 by the late Dr Vinod G Daftary, Bharat Serum and Vaccines, researches, develops, manufactures, and markets injectable biological, pharmaceutical, and biotechnology products.

The firm specializes in women’s healthcare, assisted reproductive treatment, critical care, and emergency medicines. The acquisition is anticipated to strengthen Mankind Pharma’s standing in the pharmaceutical industry.

Recently, the vaccine developer witnessed revenue growth of 15% to INR 1,435.4 Cr in FY23. The company had reported revenue of INR 1,235.3 Cr in the previous fiscal year, as per a September 2023 report from rating agency ICRA.

We reported about Mankind Pharma’s interest to acquire Bharat Serum & Vaccines from private equity firm Advent.

Founded in 1984 by Peter Brooke, Advent International is a global private equity firm. The firm has completed over 50 investments in 17 countries worldwide across a range of sub-sectors, including pharmaceuticals, life sciences, and medical devices.

Some of Advent’s recent global pharmaceutical services investments include BioDuro, GS Capsule, ICE Group, Suven Pharmaceuticals/Cohance Lifesciences, and Syneos Health. In a notable recent investment, Advent International revealed its plans to inject INR 2,475 Cr into Apollo Hospitals’ subsidiary, Apollo HealthCo.

Founded in 1985 by Stephen A Schwarzman and Peter G Peterson, Blackstone is one of the world's largest alternative investment firms. Blackstone has a global presence with investments across various sectors and regions. It has invested in India’s healthcare sector by acquiring a significant stake in Aadhar Housing Finance, which finances healthcare infrastructure among other services.

Kohlberg Kravis Roberts & Co (KKR) on the other hand was founded in 1976 by Henry Kravis, George R Roberts, and Jerome Kohlberg. Jr KKR recently invested in India's healthcare sector through its stake in Max Healthcare, one of the country's leading hospital chains.

Established in 1987 by William E Conway Jr, Daniel A D’Aniello, and David M Rubenstein, the Carlyle Group is a multinational private equity, alternative asset management, and financial services corporation. The Carlyle Group has made notable healthcare investments in India, including its acquisition of a majority stake in Medanta, a premier multi-specialty medical institute.