The acquisition would mark General Atlantic’s renewed focus on pharma, the buyout major having also backed Jubilant Lifesciences. Mar 31, 2019, 11.33 PM ISTAgenciesAccording to a 2016 statement, Everstone had bought a controlling stake in Rubicon for Rs 220 crore ($33 million). US-based growth equity investor General Atlantic is buying Rubicon Research from a private equity company in a deal that would value the home-grown contract research and manufacturing services (CRAMS) major at about $220 million. Everstone Capital, which owns the Mumbai-based Rubicon, will sell its 70% stake, while there would be primary capital infusion into the company. The exact quantum of stake sale is yet to be ascertained. The acquisition would mark General Atlantic’s renewed focus on pharma, the buyout major having also backed Jubilant Lifesciences. A spokesperson at General Atlantic declined to comment.
Sameer Sain, chief executive, Everstone Group, confirmed the exit from Rubicon and highlighted the “strong relationship and true teamwork between internal and external stakeholders” that helped produce “exceptional outcomes.” Parag Sancheti, director, Rubicon Research, thanked Everstone for underpinning its growth.
According to a 2016 statement, Everstone had bought a controlling stake in Rubicon for Rs 220 crore ($33 million). Through the sale of the three-year-old investment, Everstone Capital Partners III will generate a 4.5x multiple and a 92% internal rate of return in one of the best exits in pharmaceuticals. Everstone’s investment in 2016, with primary and secondary components, also provided an exit to Kotak Private Equity, an early investor in Rubicon. According to RoC data, Rubicon reported revenue of Rs 65 crore in 2017-18, compared with Rs 49 crore in the year ago period. Total debt is Rs 29 crore as of FY18. Due to low manpower costs, India has an edge in CRAMS, where global pharmaceutical giants outsource drug research and development to reduce costs.
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