The Pune based Emcure Pharmaceuticals Limited has announced that the Blackstone Group would invest U S $50 million in the company.
No further terms were disclosed and the Emcure Board of Directors approved the agreement. This transaction represents Blackstone's first investment in India after the launch of its private equity business in India in the middle of last year. The transaction is expected to close by August 2006.
Humayun Dhanrajgir, chairman of Emcure stated, "The board and management of Emcure were impressed with Blackstone's commitment to the pharmaceutical sector and their level of diligence in exploring an investment option in Emcure."
Satish Mehta, managing director of Emcure said, "We are excited about the positive impact Blackstone will have on our growth prospects. We evaluated various capital raising alternatives and are delighted that we have been able to conclude a deal with Blackstone who we believe will be an ideal partner for us. We look forward to their active participation in our Board and their help with strategic relationships and acquisitions given their expertise and network in the industry. Blackstone's investment is a strong demonstration of their confidence in our management, our strategy, and our future growth plan."
Akhil Gupta, chairman and managing director of Blackstone Advisors India Private Limited, stated, "Our investment in Emcure reflects our strong interest in the Indian pharmaceutical industry which we believe is well positioned to show robust domestic growth as well as benefit from increased amount of outsourcing to India. Satish has built a great business with several drivers for future growth, which is supported by a high-quality and entrepreneurial management team."
Headquartered in Pune, Emcure is engaged in the research & development, manufacturing of APIs, branded formulations and biotech products and marketing of these products in India and international markets. The Blackstone Group, a global private investment and advisory firm, was founded in 1985 and has raised a total of more then $62 billion for alternative asset investing since its formation of which approximately $30 billion has been for private equity investing. The private equity group has over 60 experienced professionals with broad sector expertise. Blackstone's other core businesses include private real estate investing, corporate debt investing, hedge funds, mutual fund management, private placement, marketable alternative asset management, and investment banking advisory services.