KKR & Co to buy 30% in Gland Pharma for Rs920 crore: report

US private equity firm KKR & Co is buying close to 30 per cent stake in Hyderabad-based Gland Pharma Ltd for about $150 million (Rs920 crore), Reuters today reported, citing two sources with direct knowledge of the matter.

The report said that a deal may be announced in the coming weeks. Neither KKR India chief executive Sanjay Nayar nor Gland Pharma promoter and vice chairman Ravi Penmetsa were available for comment.

The KKR transaction will see Gland Pharma's Ravi Penmetsa and other shareholders reducing their stake to around 60 per cent in the company.

Evolvance India Life Science Fund, an existing investor in the company, which had invested $30 million in 2008 to fund the company's expansion plans.

About Rs600-Rs700 crore of the investment from KKR & Co will be used by Gland Pharma to expand its manufacturing capacity while the remaining will be used to buy out the Evolvance's stake in the company.

Founded in 1978 as an exclusive facility for Small Volume Parenterals (SVPs), Gland Pharma is India's leading manufacturer of low molecular weight heparin and other niche products in the cardiovascular and orthopaedic segment.

The unlisted company set up an injectables facility in 1996 in collaboration with Vetter Group of Germany, Europe's leading contract manufacturing company for injectables in pre-filled syringes.

The collaboration provided Gland Pharma a technological edge in injectables and pre filled syringes.

It has pioneered Heparin technology in India and is a leader in the GlycosAminoGlycans range of molecules.

The company manufactures active pharmaceutical ingredients and injectable formulations for niche segments such as osteoarthritis, anti-coagulants, gynaecology, and ophthalmology.

It had revenues of about $150 million for the year ended 2013 and operating profit of $45 million.