ICICI Venture, one of India's largest private equity fund, and other shareholders have sold RFCL’s animal health unit, Vetnex, to Pfizer Animal Health. The deal size has not been disclosed, reports Reuters. Ranbaxy Fine Chemicals Ltd, whose name was changed to RFCL Ltd in 2006, was acquired by ICICI Venture from Ranbaxy Labs in 2005. The deal between RFCL and Pfizer is expected to close by August this year.
The deal size is reported to be $75 million or Rs 375 crore, which is more than three times the Rs 120 crore revenue of Vetnex. The deal would give good liquidity to ICICI Venture, which holds a 84% stake in RFCL. While a 5% stake in RFCL is held by a team of 13 managers, another 11% stake is held by private equity firm GLG Partners. GLG bought the 11% stake in 2007 for $20 million, valuing the firm at $182 million. ICICI Venture had bought a complete stake in RFCL for Rs 125 crore in 2005.
Vetnex reportedly has revenues of around Rs 120 crore and is considered the third-largest player in domestic animal health market. It has a presence in poultry, livestock and companion pet-healthcare verticals. Vetnex also expanded its business by acquiring Chennai-based Alved Pharma & Foods last year. Other like Virbac and Sanofi Aventis were also said to be in the fray to acquire Vetnex.
Wockhardt has also put its animal health business on the block for sale.