Nirma, 3 private equity firms in race to buy Glenmark Life Sciences

The acquisition by chemicals-to-cement major Nirma, if successful, would be a major boost for the health-care segment of the group, on the lines of its successful entry into the cement sector following its purchase of Lafarge India's assets for about Rs 9,400 crore in July 2016.
It later followed up by buying Emami cement assets for Rs 5,500 crore in February 2020.
Glenmark owns an 82.8 per cent stake in the company, which has a market valuation of Rs 6,361 crore as on Tuesday, with its shares closing at Rs 519 apiece.
Besides Nirma, American private equity giants — KKR, Blackstone and BPEA-EQT — are interested in buying a stake in the company, said a banking source.
“All the companies have done their due diligence and offers are expected soon,” said a banker close to the development. Glenmark will use the proceeds to reduce its net debt of Rs 2,904 crore as of March this year.
An e-mail sent to the Nirma group did not elicit any response until the time of going to press. In April this year, the Nirma group acquired Stericon Pharma, an eye drop and contact lens maker, for around Rs 350 crore.
Set up by Karsanbhai Patel in 1969 as a detergent and soap company, the Nirma group today is a leading chemicals, cement and detergent manufacturer. The acquisition of Glenmark Life Sciences will give a fillip to the group's ambitions in the health-care segment.