Carlyle acquires Sequent Scientific to chart new sequence of success

Sequent Scientific –parent company of Alivira Animal Health announced that company has entered into Share Purchase Agreement (SPA) with PE Firm, Carlyle for divestment of its entire shareholding with immediate effect.

After many years of painstakingly building an International Animal Health Business, largely through multiple acquisitions across geographies, Alivira Animal Health now has a new owner to pursue its stated objective of being among Top 10 global AH companies.

Arun Kumar promoter of Sequent Scientific is a serial entrepreneur exclusively into healthcare space and has in the past made handsome exits from few ventures while Sequent Scientific was his maiden foray into Animal Health. He retains stake in 2 healthcare companies – Strides Pharma and Solara Active Pharma Science.

Along with promoters divesting their 56.5% stake, Ascent Capital, an investor PE firm, also makes a complete exit from Sequent by selling its 5.69% holding which it had acquired in 2014. The acquirers, Carlyle have also made an announcement today for the acquisition of 26% stake held by institutions and individual shareholders.

Sequent Scientific is a first of kind “hybrid” animal health firm with around 34% of the business from Vet APIs and balance 66% from formulations. Company claims to manufacture 26 AH APIs and over 1,000 formulations through its acquired companies in Turkey, Spain, Belgium, Germany and Brazil among others and marketing presence across 100 countries.

The process for stake sale was on for last 6 months with the interest shown largely by the PE firms - Advent International, Carlyle and Kedaara Capital were the leading firms to have submitted the binding bids. None of Animal Health companies evinced much interest in this transaction though. J P Morgan led the mandate for the stake sale by the promoters.

Sequent Scientific reported an impressive 16% growth in 9M FY2020 (April – March) with revenues of INR 8.79 Billion (USD 117 Million; 1 USD = INR 75) and EBITDA of INR 1.25 Billion, an increase of 35% over previous year.

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