Blackstone among global funds in race for Sai Life

economictimes.indiatimes.com:

Blackstone, Carlyle, PAG, CVC Capital, BPEA EQT, Brookfield Asset Management and Apax Partners, have evinced interest in acquiring Hyderabad-based pharmaceutical company Sai Life Sciences, said multiple people aware of the development. At present, private equity investors TPG Capital holds about 43.3% stake and Swiss-healthcare fund HBM Private Equity India holds 6% stake, while promoter Kanumuri family owns the rest of the stake in Sai Life.

The promoter is looking for a valuation of $800 million (₹6,500 crore) for the company, said sources. However, the company is likely to be valued in the range of $500 million (₹4,000 crore), said a PE fund manager who is keen on the buyout.

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Investment bank Jefferies is running the process. Non-binding bids are expected by September-end, said sources.

Sai Life is an integrated contract research & manufacturing services provider, and provides drug discovery, development, and manufacturing services to leading global pharmaceuticals & biotechnology companies. The company is also engaged in generic API (active pharmaceutical ingredients) and formulation supply upon the product going off-patent.

The company has manufacturing and research & development facilities in Telangana, Karnataka and Maharashtra.

Sai Life's revenue was ₹870 crore in FY22 (₹750 crore- FY21), Ebitda was ₹120 crore (₹160 crore in FY21) with margins at 14.4% (21.5%). In 10MFY23, the revenue stood at ₹930 crore, according to India Ratings report. Sai Life expects an Ebitda of ₹300 crore in FY24, said sources.

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