Carlyle Group to buy 74% stake in SeQuent Scientific

The US-based private equity investor will buy shares at Rs 86 each and the transaction is expected to close in the third quarter of 2020.

The US-based Carlyle Group has agreed to acquire up to a 74% stake in animal health focused pharmaceutical company SeQuent Scientific, the Indian company said on Friday (8 May). Carlyle will buy shares at Rs 86 each.

The proposed transaction triggered a mandatory open offer by CA Harbor Investments and CAP V Mauritius for the purchase of up to 26% equity shares of SeQuent from public shareholders. Following the completion of this transaction, CA Harbor Investments will become the new promoter of SeQuent.

In a separate announcement, Carlyle announced an open offer for acquisition of up to 6.45 crore shares, or 26% stake, of Sequent Scientific at Rs 86 per share.

Headquartered in Mumbai, SeQuent is the largest Indian pure-play animal healthcare company with global operations. SeQuent provides animal health Active Pharmaceutical Ingredients (API), formulations, and analytical services in over 100 countries, with more than 1,700 employees and manufacturing operations in India, Spain, Turkey, Germany and Brazil.

Arun Kumar, on behalf of the current promoter group of SeQuent, said, "We are pleased to have achieved this strategic outcome for SeQuent and its investors through this divestment. Our investment in this niche sector of the industry has played out as intended thanks to the leadership of Manish Gupta, his leadership team and employees, who have collectively created this world-class Indian animal health company. We are confident that Carlyle's global network and resources will be a catalyst for SeQuent's next stage of growth and innovation. We thank the Board of Directors, our employees, investors, banks and other stakeholders for their support in building SeQuent to what it is today and wish the SeQuent team the very best."

SeQuent's consolidated net profit jumped 55.87% to Rs 20.31 crore on 16.96% rise in net sales to Rs 316.42 crore in Q3 December 2019 over Q3 December 2018.

Shares of Sequent Scientific rose 0.50% to Rs 80.25 on BSE, valuing the company at Rs 1,993.18 crore. As on 31 March 2020, total promoter holding stood at 56.16%.

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