Strides Shasun promoters raise ₹500 cr from KKR
MUMBAI: The promoters of Bengaluru-based pharmaceuticals firm Strides Shasun Ltd (formerly Strides Arcolab) have raised ₹500 crore from global private equity fund KKR & Co., according to two people aware of the development.
The money will be used to restructure existing loans and expand businesses, said the first of the two people. The structured debt financing was done through KKR India Credit Opportunities Fund II, the person said on condition of anonymity.
With a market capitalisation of ₹8,374 crore, Strides Shasun is a leading injectables company and owns eight manufacturing facilities globally, including six US Food and Drug Administration -approved facilities and two facilities for the emerging markets.
In 2014, Strides Arcolab Ltd had acquired rival Shasun Pharmaceuticals Ltd in an all-stock transaction valued at about ₹1,200 crore and renamed the company Strides Shasun. The promoter group under Arun Kumar, founder and chairman of Strides Arcolab, holds about 31% stake in the firm.
“We don’t comment on our private family office affairs,” Kumar said.
In the last couple of years, Strides has made a series of acquisitions in India and globally. These include the generic portfolio of Aspen Pharmacare in Australia, CNS business of erstwhile Ranbaxy, brands portfolio from Johnson and Johnson, controlling stake in probiotics company Medispan, which was a part of the Chennai-based Shriram Group, in 2015 and a majority stake in Australian pharmaceutical and research firm Generic Partners Holdings Co Pty Ltd last year.
KKR, which focuses on structured credit financing in India, is also in the process of raising its second India-focused structured credit fund KKR India Credit Opportunities Fund II worth ₹2,000 crore.
Its previous credit fund—KKR India Credit Opportunities Fund worth ₹1,500 crore, including co-investments, has been deployed completely and about ₹300 crore has been deployed from the new fund till date.