M&A Deal Summary

Dr. Reddy s Laboratories Acquires betapharm Arzneimittel

On February 16, 2006, Dr. Reddy s Laboratories acquired life science company betapharm Arzneimittel from 3i Private Equity, Indigo Capital and HarbourVest Partners for 480M EUR

Acquisition Highlights
  • This is Dr. Reddy s Laboratories’ 2nd transaction in the Life Science sector.
  • This is Dr. Reddy s Laboratories’ largest (disclosed) transaction.
  • This is Dr. Reddy s Laboratories’ 1st transaction in Germany.

M&A Deal Summary

Date 2006-02-16
Target betapharm Arzneimittel
Sector Life Science
Buyer(s) Dr. Reddy s Laboratories
Sellers(s) 3i Private Equity
Indigo Capital
HarbourVest Partners
Deal Type Add-on Acquisition
Deal Value 480M EUR

Target

betapharm Arzneimittel

Augsburg, Germany
Betapharm markets high quality generic drugs focusing on long-term therapy products with high prescription rates.

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Buyer(S) 1

Buyer

Dr. Reddy s Laboratories

Hyderabad, India

Category Company
Founded 1984
Sector Medical Products
Employees22,739
Revenue 279.2B INR (2024)
DESCRIPTION

Dr. Reddy’s Laboratories is an integrated global pharmaceutical company, committed to providing affordable and innovative medicines for healthier lives. Through its three businesses - Pharmaceutical Services and Active Ingredients, Global Generics and Proprietary Products – Dr. Reddy’s offers a portfolio of products and services including APIs, custom pharmaceutical services, generics, biosimilars and differentiated formulations. Major therapeutic focus is on gastro-intestinal, cardiovascular, diabetology, oncology, pain management and anti-infective. Major markets include India, USA, Russia-CIS and Europe apart from other select geographies within Emerging Markets. Dr. Reddy's Laboratories was founded in 1984 and is based in Hyderabad, India


DEAL STATS #
Overall 2 of 6
Sector (Life Science) 2 of 5
Type (Add-on Acquisition) 1 of 2
Country (Germany) 1 of 2
Year (2006) 1 of 1
Size (of disclosed) 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-09-28 Perlecan Pharma

Hyderabad, India

Perlecan Pharma is India's first integrated drug development company and is promoted by Dr. Reddy's Laboratories Limited (DRL) with equity capital commitment from ICICI Venture and other investors. The capital committed is to be used for funding R&D, clinical development and drug filing costs of 4 molecules. Perlecan Pharma has in-licensed 4 NCEs (New Chemical Entities) in the area of Cardiovascular and Metabolic disorders from DRL. The company's key objective is to advance the clinical development of NCE assets through Phase II and thereafter seek out-licensing, co-development or joint commercialization opportunities. Perlecan Pharma was founded in 2005 and is based in Hyderabad, India.

Buy $53M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2018-10-15 Dr. Reddy s Laboratories - API manufacturer

Hyderabad, India

Dr. Reddy's Laboratories - API manufacturer is a pharmaceutical manufacturing business unit located in Jeedimetla, Hyderabad

Sell -

Seller(S) 3

SELLER

3i Private Equity

London, United Kingdom

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1945
PE ASSETS 16.7B GBP
Size Mega
Type Sector Agnostic
DESCRIPTION

3i Private Equity is the private equity arm of 3i Group, a publicly held, global investment firm focused on private equity and infrastructure investing. 3i Private Equity generally targets buyout and growth capital financings and looks for opportunities across Europe, North America, and Asia. The Firm's targeted transaction range is €100 to €500 million. Industries of interest include business services, healthcare, consumer, media, oil/gas & power, technology, and financial services. 3i Group was originally formed in 1945 and is based in London.


DEAL STATS #
Overall 35 of 194
Sector (Life Science) 1 of 5
Type (Add-on Acquisition) 7 of 61
Country (Germany) 3 of 12
Year (2006) 3 of 26
Size (of disclosed) 22 of 78
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-02-13 Tag

Norwich, United Kingdom

Tag is a provider of marketing and communications supply chain services. Tag helps organizations transform business processes, enhance customer conversations and realize the potential of their brands. Tag was founded in 1820 and is based in Norwich, United Kingdom.

Sell £110M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-03-07 Marken

London, United Kingdom

Market Ltd. is a logistics and support services to the pharmaceutical industry fulfilling a key role in the early phase II and III stages of research and drug development.

Buy -
SELLER

Indigo Capital

London, United Kingdom

Category Mezzanine Finance Firm
Founded 1990
PE ASSETS 1.6B EUR
Size Large
Type Sector Agnostic
DESCRIPTION

Indigo Capital is a provider of mezzanine capital to help fund buyouts, corporate acquisitions, expansions, and recapitalizations. Indigo typically invests alongside other private equity firms, however the Firm invests independently as well. Indigo is active throughout Europe and looks to commit €10 to €100 million per transaction. Indigo is sector agnostic and generally backs businesses with 'established market positions, strong, ambitious and incentivized management and attractive growth prospects.' Indigo Capital raised its first fund in 1990. The Firm has offices in London and Paris.


DEAL STATS #
Overall 6 of 41
Sector (Life Science) 1 of 3
Type (Add-on Acquisition) 2 of 9
Country (Germany) 2 of 6
Year (2006) 1 of 3
Size (of disclosed) 2 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2005-11-01 Eau Ecarlate SAS

Genevieve- des Bois, France

Eau Ecarlate is a highly recognized brand for a group of stain removers and other cleaning products distributed primarily in France.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-03-01 Alfatherm

Gorla Minore, Italy

Alfatherm is a producer of PVC film and sheets. It offers rigid, flexible, stretched, semi rigid, plasticized, expanded, and flocked film. Alfatherm was founded in 1963 and is based in Gorla Minore, Italy.

Sell -
SELLER

HarbourVest Partners

Boston, Massachusetts, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1978
PE ASSETS 86.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

HarbourVest Partners, LLC is an investment firm that makes investments in new private equity partnerships, acquires secondary interests, and makes direct investments in operating companies. HarbourVest's largest investment area is investments in private equity funds, comprising of approximately 2/3 of HarbourVest's assets. HarbourVest's direct investment group looks for investments in growth oriented businesses at a variety of stages. The Group generally targets co-investments of $5 to $100 million, growth capital financings of $5 to $40 million, or mezzanine commitments of $5 to $20 million. Sectors of interest include software, hardware, data communications, telecommunications, and financial services. HarbourVest was formed in 1997 to assume the business of Hancock Venture Partners which was formed in 1982. HarbourVest Partners is based in Boston, Massachusetts, with additional offices in London, Tokyo, and Hong Kong.


DEAL STATS #
Overall 5 of 133
Sector (Life Science) 1 of 5
Type (Add-on Acquisition) 1 of 57
Country (Germany) 1 of 7
Year (2006) 1 of 4
Size (of disclosed) 29 of 39
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2006-02-14 Whittan

Shropshire, United Kingdom

Whittan is a manufacturer of steel storage products. Whittan manufactures, sells, and distributes three core products pallet racking, shelving, and lockers, to a wide range of customers. Whittan was founded in 1951 and is based in Shropshire, United Kingdom.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2006-05-15 Minimax

Bad Oldesloe, Germany

Minimax is one of the European suppliers of complete fire protection solutions. Minimax was founded in 1902 and is based in Bad Oldesloe, Germany.

Buy -