Drugmaker Aurobindo Pharma has reached a definitive agreement to sell Natrol LLC, a wholly owned subsidiary of Aurobindo Pharma USA Inc., to private equity firm New Mountain Capital and its affiliate Jarrow Formulas.
The all-cash transaction is valued at $550 million (₹4,048 crore at the current exchange rate), Aurobindo Pharma intimated the stock exchange Monday morning. The transaction is expected to close by January.
Aurobindo Pharma had acquired the assets of Natrol in December 2014. “Natrol has been a consistently profitable business, growing on all fronts under Aurobindo’s ownership,” the company said. “Natrol’s annual sales for the 12 months ended March 31, 2020 was about $157 million,” it added. The net worth of Natrol as on March 31 was $82.41 million.
“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,” Managing Director N. Govindarajan said.
The proceeds from Natrol’s divestiture will be used to reduce debt and for other new strategic initiatives. he said. Jefferies served as the sole financial adviser, and Sullivan & Cromwell LLP acted as legal counsel to Aurobindo.