Advent Buys Controlling Stake In Deal Valuing Avra Labs At $100 Million

Global private equity fund Advent International on Monday said it will be acquiring a controlling stake in pharma sector-focused Avra Laboratories, in a deal which values the company promoted by A V Rama Rao at USD 100 million.

The 26-year-old Avra is headquartered in Hyderabad and engaged in contract manufacturing and research services and speciality active pharmaceutical ingredients. A definitive agreement has been signed between both the parties for the deal, as per a statement.

The statement did not disclose details on valuations, but officials privy to the matter pegged the valuation of the company started by Padmabhushan awardee Rao and his family at USD 100 million.

Avra has four facilities across Telangana and Andhra Pradesh, and is focused on niche generic molecules and also proprietary custom synthesis business for global pharmaceutical players.

Rao, the founder and managing director of the company, said he is confident of Avra will see sustained growth and reach newer markets.

Advent International India's managing director Pankaj Patwari said the private equity fund wants to create top five merchant API Platform in India and the deal will also allow it to be present across the spectrum of generic and patented molecules.

The PE fund, which has been investing in India since 2007, and its bets in the last one year include ZCL Chemicals, Eureka Forbes, Classy Kontainers and Encora.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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