ChrysCapital sets sights on pharma buyout deals
private equity firm ChrysCapital is looking to acquire domestic companies in the formulation business in the range of $200 million-$500 million. Along with partners, deal sizes can potentially reach $1.5 billion, said a senior executive.
«We're looking at buyouts. These can be companies in the top 30-75 in their category. We will look at the $200 million to $500 million range,» Kshitij Sheth, MD of ChrysCapital told ET in an interview. Sheth said the aim is to grow these companies to "$1.5-$2 billion valuations and take them public eventually. While we could consider a strategic sale, the goal will be to take these platforms public".
ChrysCapital is focused on deals within top 20 to 50 ranked Indian companies in formulation business. The PE firm has focused on acquiring non-controlling interests in pharma companies. ChrysCapital could partner either another large fund, a strategic or a sovereign fund for bigger acquisitions.
«Any of those three combinations would work for us as a partner. But a partner that can put in as much capital as we can, if not more. Because for us, we focus on industries. We're industry experts. We understand it inside out. We'll tell you whom to hire, what strategy to deploy, what acquisitions to target, all of that. Sometimes, we don't have the ability to write a huge cheque size. That's when we take in partners that are like-minded and think the same way,» he said.
While local formulation will remain a major focus area, ChrysCapital is open to acquiring export-led companies in niche
