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September 26, 2022 Livemint

Veda advises Softgel Healthcare, a leading pharma softgel CDMO player on its divestment of majority stake to Everstone Capital

Everstone Capital, the private equity arm of Everstone Group, has acquired a controlling stake in Softgel Healthcare (SHPL), a manufacturer focused on nutraceutical, pharmaceutical and OTC or over-the- counter segments, the PE firm announced on Wednesday.

The firm did not disclose the valuation. A person familiar with the development told VCCircle that SHPL is valued at $125 million and clocks over ₹100 crore Ebitda or earnings before interest, tax, depreciation and amortization.

The Singapore-headquartered firm said with the acquisition it will aim to scale, diversify, and globally recognize contract research, development, and manufacturing organization in India with the support of the strategic resources of Everstone.

Puncham Mukim and Arjun Oberoi, managing directors, Everstone Capital, will join the board of SHFL post this deal.

Chennai-headquartered SHPL is part of the pharmaceutical contract manufacturing company Madras Pharma Group. It has eight manufacturing facilities covering all dosage forms. SHPL specializes in the research, development and manufacturing of soft gelatin capsules and probiotics.

SHPL has a customer base across the Americas, Africa, Asia and India with over 80% of its sales being in exports. The company has a manufacturing facility in Chennai, conforming to globally recognized certifications and registrations such as USFDA, TGA, EU-GMP and Health Canada.

“Sulaiman and the management team led by Dr Vijay Alagappan. The company, with its strong R&D capabilities and ability to manufacture products in advanced dosage forms, is well positioned to be a global leader in the CDMO segment. We believe that Everstone’s value creation playbook will help SHPL realize its global goals and propel the company into its next phase of growth,” said Sameer Sain, Co-founder and Chief Executive Officer, Everstone Group.

Veda Corporate Advisors was the exclusive financial advisor to SHPL and its shareholders.

Everstone Capital broadly invests in sectors such as pharma and healthcare, consumer, and financial services, in addition to technology services companies. The PE firm raised $730 million for the third fund in 2015, which invested in pharma, healthcare, financial services, consumer and IT services businesses.

In July, VCCircle reported, Everstone Capital is looking to exit a bet in the IT space and is currently in talks with strategic suitors to close the transaction at around $200 million.