Huge pharmaceutical deal: Platinum Equity gains control of Inventia Healthcare’s key division

In a significant move within the global pharmaceutical sector, Platinum Equity has secured a controlling stake in the Oral Solid Dosage (OSD) business of Inventia Healthcare Limited. The acquisition involves purchasing shares from India Life Sciences Fund III (Advised by InvAscent), NYLIM Jacob Ballas India Fund III, LLC, Mauritius, and affiliates of the Shah family, the founding members of Inventia. The financial specifics of the deal remain undisclosed.

Strategic Implications and Market Position

The acquisition aligns with Platinum Equity’s strategy to strengthen its footprint in the pharmaceutical industry, particularly in the generics sector. India’s pharmaceutical market is one of the world’s largest and fastest-growing, known for its robust generics industry. This sector’s importance is underscored by its role in supplying affordable medications globally, a trend that Platinum Equity is keen to capitalize on.

Platinum Equity Co-President Jacob Kotzubei highlighted the strategic value of Inventia’s business model. “India’s generics sector is renowned for its growth potential and crucial role in the global pharmaceuticals market,” Kotzubei stated. “Inventia has established a strong B2B model that serves both emerging and mature markets with high-quality products, leveraging its long-standing customer relationships and extensive drug development and manufacturing capabilities.”

Inventia Healthcare, headquartered in Mumbai, was established in 1985 by the late Janak Shah and his wife, Maya Shah. The company has evolved into a significant player in the pharmaceutical industry, providing semi-finished and finished OSD formulations. Its clientele includes over 100 global and local pharmaceutical companies, covering more than 40 countries across North America, South America, Europe, Southeast Asia, the Middle East, and Africa.

Inventia’s Operational Footprint and Capabilities

Inventia operates a state-of-the-art manufacturing facility in Ambernath and a research and development center in Thane, Maharashtra. These facilities are accredited by stringent regulatory authorities, including the U.S. Food and Drug Administration (FDA) and the U.K. Medicines and Healthcare products Regulatory Agency (MHRA). This accreditation underscores Inventia’s commitment to maintaining high-quality standards and regulatory compliance.

The company’s diverse product portfolio and its capability to cater to both regular and value-added generics have positioned it as a key player in the global pharmaceutical supply chain. The acquisition by Platinum Equity is expected to enhance Inventia’s capacity to expand its market reach and technological capabilities.

Future Prospects and Expansion Plans

Platinum Equity’s acquisition of Inventia is not just a strategic investment but also a stepping stone towards significant growth and expansion. Amit Sobti, Managing Director at Platinum Equity, emphasized the potential for growth in the fragmented generics market. “Inventia represents a strong platform for expansion in a market that remains largely fragmented,” Sobti said. “Our objective is to enhance the company’s existing product pipeline and capabilities through strategic acquisitions, thereby broadening its portfolio and operational scope.”

Platinum Equity plans to leverage its operational and financial resources to institutionalize Inventia further, setting it up for scalable success. The firm aims to drive organic growth and identify additional acquisition opportunities to augment Inventia’s product offerings and market presence.

Investment Strategy and Market Insights

The acquisition reflects Platinum Equity’s broader investment strategy in India, where the buyout market is evolving rapidly. The firm sees significant potential in partnering with mature companies that require both capital and operational expertise. This approach aligns with Platinum Equity’s experience in supporting founder-led businesses and facilitating their growth through strategic operational enhancements.

Kotzubei also noted that Platinum Equity is actively seeking further investment opportunities in India. “The buyout market in India is maturing, presenting more opportunities for partnerships with companies that need operational support and expertise,” he explained. “We are well-positioned to address these needs and contribute to the growth of businesses that are at a critical juncture in their development.”

Legal and Advisory Team

The transaction was supported by a comprehensive advisory team. Barclays served as the exclusive financial advisor to Platinum Equity. Latham & Watkins and Trilegal provided international and Indian legal counsel, respectively, while Kirkland & Ellis offered financing counsel. Rothschild & Co and Stifel Nicolaus India advised the Sellers, and Quillon Partners acted as their legal counsel.

Recent Developments at Platinum Equity

Earlier this month, Platinum Equity also announced the acquisition of ASP Global, a notable player in the healthcare sector. ASP Global specializes in the development, sourcing, and distribution of medical products, utilizing its global network to meet the needs of healthcare providers and distributors. This acquisition highlights Platinum Equity’s ongoing commitment to expanding its presence in the healthcare sector and enhancing its product offerings.