Fosun Pharma $1.26 billion acquisition of Gland Pharma

Overview:

• Fosun International, a Shanghai-based global Chinese conglomerate founded by Guo Guangchang, has made a definite agreement with Gland Pharma to acquire a 86% stake in the company from founders Ravi Penmetsa and his family, and private equity firm KKR.
• The acquisition is conducted through the Fosun International's subsidiary, Shanghai Fosun Pharmaceutical (Group).
• The transaction represents a full exit for KKR.
• Fosun—a researcher, developer, producer and retailer of bio-pharmaceutical products worldwide—is planning to fund the deal with up to $800 million in loans.
• Hyderabad-based Gland is a global provider and manufacturer of injectables.
• Fosun Pharma hopes to increase overseas revenue to 40% of the total over five years via acquisitions.
• Jefferies acted as financial advisor to both Gland Pharma and KKR. 
• The deal is expected to close on Feb 3 2017.
• The transaction is the largest acquisition of an Indian company by a Chinese buyer.

Wai Yee Tsang - Journalist