Parikh Family Sells ZCL Chemicals to PE Firm Advent for INR 2,000 crore
Thursday, 11 March 2021, 17:46 IST
Parikh Family, founder, and promoters of ZCL Chemicals Limited (“ZCL”) have sold the entire stake in the Company to Advent International (“Advent”), one of the largest and most experienced global private equity investors, for an equity value of INR 2,000 crore.
Pursuant to the signing of definitive agreements last month, the Parikh family sold its entire 80 percent holding and has completely exited ZCL. Of the above, 26 percent will be transferred subject to the customary closing conditions and receipt of all applicable regulatory approvals. Morgan Stanley Private Equity Asia (“MSPEA”), a private equity platform that acquired a 20 percent stake in ZCL for INR 150 crore in 2016, has also exited ZCL for INR 390 crore. The Parikh family facilitated a seamless exit to the private equity fund through this transaction.
Formerly known as Zandu Chemicals Limited, ZCL has been one of the fastest-growing pharmaceutical companies in the active pharma ingredients or API space in India. APIs are the ingredient for the manufacture of drugs.
In 2008, the Parikh family had acquired ZCL from Zandu Pharmaceuticals Limited at an equity valuation of INR 12.5 crore, resulting in a 160 times return in 12 years at the current valuations of INR 2,000 crore.
“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. On behalf of the Parikh family, I would like to thank all the stakeholders, leadership team and employees, who have collectively created this world-class Indian company. We are confident that Advent’s resources will be a catalyst for ZCL’s next stage of growth and innovation,” said Nihar Parikh, Founder & Promoter of ZCL.
ZCL, which is a debt-free company as of date with surplus cash reserves, has posted a CAGR of 52.64 percent in terms of its valuation for the last 12 years.
Headquartered in Mumbai, ZCL combines the power of science & technology. It has a state-of-the-art US FDA facility at Ankleshwar, Gujarat.
Pursuant to the signing of definitive agreements last month, the Parikh family sold its entire 80 percent holding and has completely exited ZCL. Of the above, 26 percent will be transferred subject to the customary closing conditions and receipt of all applicable regulatory approvals. Morgan Stanley Private Equity Asia (“MSPEA”), a private equity platform that acquired a 20 percent stake in ZCL for INR 150 crore in 2016, has also exited ZCL for INR 390 crore. The Parikh family facilitated a seamless exit to the private equity fund through this transaction.
Formerly known as Zandu Chemicals Limited, ZCL has been one of the fastest-growing pharmaceutical companies in the active pharma ingredients or API space in India. APIs are the ingredient for the manufacture of drugs.
In 2008, the Parikh family had acquired ZCL from Zandu Pharmaceuticals Limited at an equity valuation of INR 12.5 crore, resulting in a 160 times return in 12 years at the current valuations of INR 2,000 crore.
“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. On behalf of the Parikh family, I would like to thank all the stakeholders, leadership team and employees, who have collectively created this world-class Indian company. We are confident that Advent’s resources will be a catalyst for ZCL’s next stage of growth and innovation,” said Nihar Parikh, Founder & Promoter of ZCL.
ZCL, which is a debt-free company as of date with surplus cash reserves, has posted a CAGR of 52.64 percent in terms of its valuation for the last 12 years.
Headquartered in Mumbai, ZCL combines the power of science & technology. It has a state-of-the-art US FDA facility at Ankleshwar, Gujarat.
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