9 months ago
Global PE Firms Compete for Stake in Encube Ethicals
Some big investment companies, like Advent International and Warburg Pincus, want to buy a part of a medicine-making company called Encube Ethicals.
Another company, Quadria Capital, already owns a small part of Encube and wants to sell it for around $2.2-2.3 billion.
Encube's owners might also sell some of their shares.
This is happening because many companies are looking to make their medicines in different places, and India is becoming a popular choice for this.
This makes Encube a valuable company that many investors want to be a part of.
Advent International and Warburg Pincus join race to acquire stake in Encube Ethicals
Quadria Capital seeks valuation of $2.2-2.3 billion for its minority stake
Encube's promoters also considering selling a portion of their stake
JP Morgan advising Quadria Capital, with Blackstone, KKR, and EQT also interested
Growing investor interest in CDMO sector due to global supply chain realignments and growth potential
- Who
- Global private equity firms Advent International, Warburg Pincus, Quadria Capital, Encube's promoters, Blackstone, KKR, and EQT
- What
- Several private equity firms are in the race to acquire a stake in the contract drug maker Encube Ethicals
- Where
- Encube Ethicals is an Indian company serving multinational firms globally
- When
- Quadria Capital is looking to sell its stake now, with reports emerging on August 20 and September 25
- Why
- The deal is driven by investor interest in the growing CDMO sector, supply chain diversification away from China, and Encube's strong performance and expansion strategy
Company & Promoter Stance
Investor Stance
Sale Strategy
Company & Promoter Stance
Promoters may sell some of their stake alongside Quadria Capital's minority stake.
Investor Stance
Advent International and Warburg Pincus have joined the race to acquire a stake. Other interested firms include Blackstone, KKR, and EQT. Quadria Capital is seeking a valuation of $2.2-2.3 billion.
Future Plans
Company & Promoter Stance
Quadria Capital was also open to an initial public offering (IPO) of Encube.
Investor Stance
Private equity firms are competing to acquire a stake, indicating a preference for a private sale or controlling stake acquisition.
Key facts
- Company
- Encube Ethicals Pvt. Ltd
- Industry
- Contract Development and Manufacturing Organization (CDMO)
- Founded
- 1998
- Promoter/Founder
- Mehul Shah
- Key Customers
- Reckitt, Sanofi, Teva, GSK, Bayer
- FY24 Revenue
- ₹1,000 crore
- Quadria Capital Investment (2021)
- $100-120 million for ~15% stake
- Valuation sought by Quadria
- $2.2-2.3 billion
Quotes
One of the persons cited above
An anonymous source with knowledge of the development
“It is most likely a controlling stake sale with the promoters also looking to sell some stake alongside Quadria Capital”
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