PEs look to buy into Integrace, True North may sell 30% stake

A clutch of private equity funds — Singapore’s Temasek Holdings, Kuala Lumpur’s Creador and homegrown Kedaara Capital — are in separate talks to acquire a significant minority stake in Integrace, the Mumbai-based pharmaceutical formulations manufacturer to tap the rising potential of the Indian drug industry.

True North, the private equity fund which owns Integrace, will sell about 25-30% stake to the potential investor, multiple people aware of the development, said.

The deal is likely to value Integrace at ₹1,300-1,400 crore, said one of the sources. Investment bank Rothschild advises True North in the stake sale.

The proposed fund will be used for acquisition of formulation brands in pain management, neurology and women's health, said one of the sources mentioned above. At present, True North owns 95% stake in Integrace, while management holds the rest.


Spokespersons with Temasek and True North declined to comment, while mails sent to Kedaara, Creador did not elicit any response till the press time.

For the year FY21, Integrace had posted a revenue of ₹280 crore with an Ebitda of ₹75 crore, said sources in the know.

Set up in 2018, Integrace has expanded the business through multiple buyouts. Last year, it acquired Glenmark Pharmaceuticals' gynaecology business in India and Nepal for ₹115 crore in cash, while it agreed to acquire Glenmark’s orthopaedic and pain management business in India and Nepal, valuing the business at ₹635 crore in 2018.

In its latest deal with Glenmark, Integrace acquired the established brands in the gynaecology space such as Dubagest, Mumfer, Fenza and Milical along with the sales and marketing team of the gynaecology division.

Kedar Rajadnye, former head of consumer products division of Piramal Enterprises, was hired as the CEO of Integrace in 2018.

Creador has investments in Indian pharma companies such as Paras Pharma and Corona Remedies. It had sold its stake in Corona to ChrysCapital in April this year. Temasek is also an active investor in the healthcare & pharmaceuticals industry in India, with major portfolios such as Global Health (Medanta), Intas Pharmaceuticals, PharmEasy and Syngene International. Temasek’s exposure to Indian companies and assets stands at $14 billion as of March 31, 2021 compared to $9 billion a year ago.