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The Carlyle Group to acquire majority stake in SeQuent Scientific

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The transaction is expected to close in the third quarter of 2020, subject to customary closing conditions and regulatory approvals

Investment firm The Carlyle Group and the existing promoters of SeQuent Scientific have announced that CA Harbor Investments, an affiliated entity of CAP V Mauritius and The Carlyle Group (Carlyle), has agreed to acquire an equity stake of up to 74 per cent in SeQuent Scientific, a pure-play animal healthcare company in India.

CA Harbor Investments proposes to acquire a majority stake in SeQuent via private share purchase agreements, for a purchase price of Rs 86 per share. Pursuant to the Securities and Exchange Board of India (SEBI)’s Takeover Regulations, the proposed transaction will trigger a mandatory open offer by CA Harbor Investments and CAP V Mauritius for the purchase of up to 26 per cent equity shares of SeQuent from public shareholders to be identified in the open offer documents. The transaction is expected to close in the third quarter of 2020, subject to customary closing conditions and regulatory approvals. Following the completion of this transaction, CA Harbor Investments will become the new promoter of SeQuent.

Headquartered in Mumbai, SeQuent is reportedly India’s largest pure-play animal healthcare company. SeQuent provides animal health Active Pharmaceutical Ingredients (API), formulations, and analytical services in over 100 countries.

Arun Kumar, on behalf of the current promoter group of SeQuent, said, “Our investment in this niche sector of the industry has played out as intended thanks to the leadership of Manish Gupta, his leadership team and employees, who have collectively created this world-class Indian animal health company. We are confident that Carlyle’s global network and resources will be a catalyst for SeQuent’s next stage of growth and innovation.”

Neeraj Bharadwaj, Managing Director of the Carlyle Asia Partners team, said, “We will draw on our global network, industry knowledge and operating expertise in healthcare to advise SeQuent on its business expansion strategy, enhance its operations, and help the company drive sales and product innovation. We see strong growth potential in the global animal health industry, including the livestock segment where SeQuent is operating, thanks to increasing demand for animal protein, rising awareness of food safety, and growing disposable income.”

Manish Gupta, CEO of SeQuent, said, “We look forward to a new phase of development, where we together with Carlyle will work to grow the company into one of the top global animal healthcare companies.”

Earlier, The Carlyle Group’s investments in the Indian healthcare sector include Medanta Medicity Hospital, in the National Capital Region of Delhi, and Metropolis Healthcare, which operates a chain of diagnostic centres and laboratories.

The Carlyle Group has invested more than $2.5 billion in India as of March 31, 2020. Its other notable investments include SBI Life, SBI Card, HDFC, India Infoline, Delhivery and PNB Housing Finance.

JP Morgan acted as exclusive financial advisor while Nishith Desai Associates acted as legal advisor to SeQuent and its promoters.

Nomura acted as exclusive financial advisor while AZB & Partners and White & Case acted as legal counsels to CA Harbor Investments and Carlyle. Nomura will be acting as the manager to the public tender offer.

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