Zandu Chemicals Limited sold to Advent for Rs 2000 cr
By IANS| Updated: 11th March 2021 6:13 pm IST
New Delhi: The Parikh family, founder and promoter of ZCL Chemicals Limited (ZCL), announced on Thursday that it has sold the entire stake in the company to Advent International, one of the largest private equity investors, for an equity value of Rs 2,000 crore.
Pusuant to the signing of definitive agreements last month, the Parikh family sold its entire 80 per cent holding to completely exit ZCL. Of the above, 26 per cent will be transferred subject to the customary closing conditions and receipt of all applicable regulatory approvals.
Synopsis
Nihar Parikh has sold 100% of ZCL, an API co to Advent International riding the industry upswing after turning around a once-sub scale operation. Nihar Parikh.
Back in 2008, Nihar Parikh had no inkling about the ferocity of the takeover battle between his family and Kolkata based
Emami who had raided their family’s crown jewel – the 100 year old OTC and ayurveda company Zandu Pharmaceuticals, makers of the eponymous pain relief balm, chyawanprash etc.
Like most 22-year olds, Nihar loved his weekend pub crawls in Antwerp, taking several swigs of his favourite Belgian pale ales, after week long toils on the shop floor at the Johnson & Johnson speciality chemicals manufacturing plant at the industrial town of Geel where he was interning as a chemical engineer.
On Tuesday, private equity firm Advent International acquired the entire stake in the company
In 2008, when FMCG major Emami Group took over Zandu Pharmaceuticals from Mumbai-based Parikh family, 22-year-old Nihar Parikh decided to buyback Zandu Chemicals, a subsidiary, and carve it out into a separate firm. Little did he know that his initial investment of ₹12.5 crore would multiply 160 times to fetch him a whopping ₹2,000 crore in just 12 years.
On Tuesday, private equity firm Advent International acquired the entire stake in ZCL Chemicals Ltd (formerly known as Zandu Chemicals Ltd) for about ₹2,000 crore, a move that also marked the exit of Morgan Stanley Private Equity Asia (MSPEA), which also sold its 19 per cent stake in the company.
Exclusive content, features, opinions and comment - hand-picked by our editors, just for you.
Pick 5 of your favourite companies. Get a daily email with all the news updates on them.
Track the industry of your choice with a daily newsletter specific to that industry.
Stay on top of your investments. Track stock prices in your portfolio.
NOTE :
This product is a monthly auto renewal product.
Cancellation Policy: You can cancel any time in the future without assigning any reasons, but 48 hours prior to your card being charged for renewal. We do not offer any refunds.
To cancel, communicate from your registered email id and send the mail with the request to assist@bsmail.in. Include your contact number for easy reference. Requests mailed to any other ID will not be acknowledged or actioned upon.