Advent International Acquires ZCL Chemicals for INR 20000 Crore
Advent International headquarter Boston; USA was founded in 1984 by Peter Brooke is an American global equity firm focus on buyouts of companies in North America, the Asia-Pacific, Europe and Latin America.
On 11 March, 2021, Advent International acquired ZCL chemical limited for INR 2000 crore. Parikh family owned and promoter of ZCL chemical limited announced that they had sold their all stakes to Advent International. According to the reports they had sold their 80% stakes to the firm and has completely exited ZCL. Morgan Stanley Private Equity Asia (MSPEA), a private equity platform that acquired 20 percent stake in ZCL for INR 150 crore in 2016, has also exited the company for an amount of INR 390 crore.
Zandu Chemical Limited was founded in year 1991 headquareted in Mumbai, India have state-of-the-art US FDA successfully inspected facility with a capacity of 214 KL along with strong research & development capabilities strategically located in the industrial park of Ankleshwar, Gujarat. Company focus on niche therapeutic areas of CNS, ARVs and Controlled substances. They are specialized in CNS segments like ADHD, Anti-psychotics, Anti-vertigo, Anti-inflammatory, Pain management, Alzheimer disease, and others.
Advent International headquarter Boston; USA was founded in 1984 by Peter Brooke is an American global equity firm focus on buyouts of companies in North America, the Asia-Pacific, Europe and Latin America. Since its inception in 1984, Advent has invested USD 40 billion in private equity capital.
In 2008, the Parikh family acquired ZCL from Zandu Pharmaceuticals Limited at an equity valuation of INR 12.5 crore. The current value of the firm - at which it has been sold to Advent - 160 times higher than the value at which ZCL was acquired by the Parikh family 12 years ago.
According to Nihar Parikh, Founder and Promoter of ZCL, said, "ZCL has emerged as India’s fastest growing pharmaceutical company in the last 12 years. We are excited to achieve this strategic outcome for ZCL and its investors through this divestment,".
ZCL, which is a debt-free company as on date with surplus cash reserves, has posted a CAGR of 52.64 percent in terms of its valuation for the last 12 years.