- Aurobindo Pharma to divest US-based subsidiary Natrol to New Mountain Capital
- New Mountain Capital acquired profitable Natrol at $550 mn.
- Proceeds from the divestiture would be used to clear debts, said the pharma company.
THD NewsDesk, Hyderabad: On October 26, Aurobindo Pharma USA Inc. confirmed a deal with the private equity firm New Mountain Capital to divest its US-based subsidiary Natrol. The consistently profitable Natrol was valued at a hefty $550 million (approximately Rs 4,048 crore). Natrol’s appreciable annual sales of over $157 mn last year reflect that the firm thrived on all fronts.
With the acquisition of Natrol, a pioneer in the nutraceuticals arena, New Mountain Capital looks forward to enhancing its position in the pharmaceutical market. New Mountain Capital is all set to combine Natrol with Jarrow Formulas as soon as the transaction is closed in January 2021.
“Aurobindo is committed to evaluating and concluding strategic options towards focused portfolio enhancement with the ultimate objective of enhancing stakeholder values. We are pleased to sell the Natrol business to an outstanding private equity player, who could focus additional resources to grow Natrol, its products and brands further,” Aurobindo Pharma Managing Director N Govindarajan said.
Further, the company plans to utilize the divestiture proceeds to strategize fresh initiatives to revive the drug firm. Moreover, all existing debts can be cleared as soon as the deal is finalized, the company said. Since Natrol’s acquisition by Aurobindo Pharma in 2014, the cosmetics company became one of its most valuable assets.
Source: The Economic Times