Homegrown private equity firm True North has signed a definitive agreement with Bengaluru-based Anthem Biosciences Pvt Ltd to acquire a minority stake in the company.
The development comes after VCCircle exclusively reported in September last year that the firm was in advanced negotiations to pick up a stake in Anthem Biosciences, which is involved in pharmaceuticals research and drug discovery segments.
While the PE firm and Anthem Biosciences did not disclose the financial details of the transaction, VCCircle reported in September that the deal could value the company between $800 million and $1 billion (around Rs 7,350 crore).
Later reports corroborated the exclusive, suggesting that True North would pick up a 10% stake in the healthcare firm at the upper end of the valuation spectrum.
In a statement, the investor said it will partner with Anthem Biosciences founders Ajay Bhardwaj, Ganesh Sambavisan, and KC Ravindra to help the company invest the capital for expanding capacity and capabilities during its next growth phase.
“We have been closely following the growth story of Anthem Biosciences and are impressed with the progress the team has made in becoming a globally competitive player in the fast-growing CDMO (contract development and manufacturing company) industry,” True North partner Satish Chander said.
Anthem Biosciences was set up in 2007, and says its integrated platform involves drug discovery, development, and manufacturing services with scale-up capabilities in the chemical and biological pharmaceuticals space. Its manufacturing facilities are located near Bengaluru.
According to VCCEdge, Anthem Biosciences reported consolidated net sales of Rs 355.96 crore and post-tax profits of Rs 66.08 crore for the 2019-20 financial year.
True North, set up in 1999, has been involved in the private equity business for over two decades. The firm focuses on mid-sized profitable businesses across sectors. It has so far launched six separate investment funds.
Last month, True North recruited Kapil Singhal, a former KKR managing director, to head its credit platform. The development came after VCCircle reported in June last year that the firm was thinking about launching a credit vertical.