KKR-Led Gland Pharma to be Purchased by Fosun Pharma In $1.26 Billion Transaction

KKR & Co. L.P.

indicated that India-based Gland Pharma Limited signed a definitive agreement with Shanghai Fosun Pharmaceutical (Group) Co. Ltd. under which Fosun would buy about 86% stake in Indian firm for a maximum of US$1.26 billion. The agreement enables Fosun Pharma to buy Gland shares held by KKR Floorline Investments Pte. Ltd. together with its affiliates, "KKR". This was in addition to shares acquired from other shareholders of the Company. The company stated that its founder Raju, and his son, Ravi Penmetsa, would continue to be on the Board while Penmetsa would continue as Managing Director and CEO. The company added that the family would retain a stake in Gland. KKR said that it invested in Gland in 2014 and the company has seen its capacity, as well as, profit grow considerably since then. It was attributed in part by Gland's investment into a new manufacturing plant, considerable maximization optimization of existing facilities, improved R&D spend and focus, and Gland's ability to file for and own further intellectual property. Member of KKR and Managing Partner of KKR Asia, Joseph Bae, commented on the transaction saying, "With a track record of achieving greater scale, innovating world-class products and operating to global best practices, KKR takes pride in its relationship with Gland and in The Company's support of the ‘Make in India' campaign. We are confident Fosun Pharma will experience continued success as it invests and supports Gland's next stage of growth." After the completion of the transaction, Gland will remain headquartered in Hyderabad in India. KKR shares traded $0.20 or 1.46 percent down at $14.51 on Thursday at the time of writing this.