PEs line up in bid to acquire Gland Pharma

Global private equity firms Blackstone (NYSE: BX), Brookfield Corporation (TSX:BN) and Warburg Pincus are in talks to acquire a majority stake in Hyderabad, India-based Gland Pharma from China's Shanghai Fosun Pharmaceutical (SHSE: 600196) in a deal expected to be valued at nearly $3 billion, according to media reports quoting three people with knowledge of the development said.

Gland is a global supplier of a variety of medicines administered through vials, syringes, bags and pumps. Its largest exports market is the USA, where sales of injectables are predicted to grow by about 10% annually in the next five years.

Fosun Pharmaceutical Group had acquired a 74% stake in Gland for about $1.1 billion in 2017 from an investor group including KKR & Co. It currently owns 57.86% stake in the Indian generic injectable maker. It is now looking to sell its remaining ownership in the company.