19 November 2020
BDA advises Flex and Escientia Life Sciences on sale of Escientia to Deccan Fine Chemicals
Divested Escientia Life Sciences to Deccan Fine Chemicals
BDA Partners is pleased to announce that its clients, Flex Ltd (Nasdaq: FLEX) and Escientia Life Sciences, have sold a controlling stake in Escientia to Deccan Fine Chemicals, a specialty chemicals manufacturer, based in Hyderabad, India. Terms of the transaction were not disclosed.
Escientia has operations in both the US and India. Escientia is a fast-growing pharmaceutical CDMO (contract development & manufacturing organization) for leading life sciences companies. Escientia focuses on developing and making complex APIs (active pharma ingredients) for human and animal health applications. Founded in 2007 by senior executives from large, innovative American pharma companies, with experience across drug discovery, development, and commercialization, Escientia has been a key partner in 120 drug development/manufacturing projects, many of which have become commercialized therapeutics.
The selling shareholder is Flex, a provider of technology, manufacturing, and supply chain solutions, which partnered with Escientia on the design and construction of Escientia’s state-of-the-art manufacturing facility in Visakhapatnam, India and R&D labs in Hyderabad, India. Flex has been a strong partner to Escientia for eight years. BDA Partners acted as the exclusive financial advisor to Flex and Escientia on the transaction.
Deccan Fine Chemicals, based in Hyderabad, is a leading manufacturer of active ingredients and advanced intermediates for agchem, fine and specialty chemicals. Deccan will bring synergies to Escientia, providing key starting intermediates and combining R&D and sourcing. Escientia will enable Deccan to become a significant player in the pharma sector.
GS Raju, Managing Director, Deccan said: “We’re excited to be partnering with Escientia and believe that our combined offering of cGMP and Pre-GMP manufacturing coupled with our process development competence and technology toolbox, will establish us as a leading partner for the pharma industry. Deccan has been actively looking at participating in the pharma CMO space. We’re very happy that we found Escientia, whose focus on innovator customers and ultra-modern manufacturing matches our business model.”
Euan Rellie, Senior Managing Director, BDA said: “We’re proud to have worked for Flex and the Pendri family, and to have secured the optimal partner for Escientia going forward. This is a timely transaction. Covid-19 has created considerable opportunities for the US and Indian pharma supply chains.”
Andrew Huntley, Senior Managing Director and Head of Healthcare, BDA, said: “This important CDMO transaction builds on BDA’s strong record in the outsourced life science services space. It’s a fragmented sector which is seeing significant growth in Asia, with both corporates and sponsor-backed players chasing consolidation opportunities.”
About Flex Ltd
Flex, formerly known as Flextronics, was founded in 1969 in Silicon Valley, California, and has since expanded its operations through a combination of organic growth and acquisitions. Now headquartered in Singapore and listed on NASDAQ (ticker: FLEX), Flex is a globally-recognized provider of “sketch-to-scale” services to design, build, ship and manage complete consumer and enterprise products for customers in a range of end-markets. In the fiscal year ended March 2020, the company reported sales of over US$24bn. www.flex.com
About Escientia Life Sciences
Founded in 2007 by senior executives with experience working in blue-chip, US pharma companies, Escientia Life Sciences is a contract developer and manufacturer of active pharma ingredients. Headquartered in South Windsor, CT, with additional locations in India, including a state-of-the art, FDA-approved manufacturing facility in Visakhapatnam, Escientia provides end-to-end services to a mix of clients, from global pharma majors to innovative biopharma companies. www.escientia.com
About Deccan Fine Chemicals
Deccan Fine Chemicals is a privately-owned manufacturer of active ingredients and advanced intermediates for the agrochemical, fine and specialty chemical sectors. Based in Hyderabad, India, Deccan offers fully-integrated contract development and manufacturing services, from product development to commercial scale. Deccan is a preferred supplier of value-added services and products to a global customer base. Deccan is jointly owned by its founders, with strategic investment from Mitsubishi Corp, Japan. www.deccanchemicals.com
About BDA Partners
BDA Partners is the global investment banking advisor for Asia. We are a premium provider of Asia-related advice to sophisticated clients globally, with over 20 years’ experience advising on cross-border M&A, capital raising, and financial restructuring. We provide global reach with our teams in New York and London, and true regional depth through our seven Asian offices in Mumbai, Singapore, Ho Chi Minh City, Hong Kong, Shanghai, Seoul and Tokyo. BDA has deep expertise in the Chemicals, Consumer & Retail, Health, Industrials, Services and Technology sectors. We work relentlessly to earn our clients’ trust by delivering insightful advice and outstanding outcomes.
BDA Partners has strategic partnerships with William Blair, a premier global investment banking business, and with DBJ (Development Bank of Japan), a Japanese government-owned bank with US$150bn of assets. www.bdapartners.com
US securities transactions are performed by BDA Partners’ affiliate, BDA Advisors Inc., a broker-dealer registered with the Securities and Exchange Commission (SEC). BDA Advisors Inc. is a member of the Financial Industry Regulatory Authority (FINRA) and SIPC. In the UK, BDA Partners is authorized and regulated by the Financial Conduct Authority (FCA). In Hong Kong, BDA Partners (HK) Ltd. is licensed and regulated by the Securities & Futures Commission (SFC) to conduct Type 1 and Type 4 regulated activities to professional investors.
Agreed to be acquired by Mindray
Divested majority stake to DCP Capital
Agreed to divest Couvet, Switzerland facility to WuXi AppTec
Raised Series B round from ABC World Asia
Divested Neoss to CareCapital
Divested significant stake in Kehua Bio-Engineering to Gree Real Estate
Divested LAP Laser to IK Investment Partners
Divested majority stake to The Longreach Group
Divested plant health business in Japan to Nisso
Divested The Ritedose Corporation to AGIC and Humanwell
Majority recapitalized by Galen Partners
Divested CMC Biologics to Asahi Glass
Acquired Graphic Controls, USA
Divested to a Japanese chemicals & life science company
Sold stake in An Giang Plant Protection to Standard Chartered
Acquired Adval Tech Medical (Suzhou) and Omni Manufacturing (Mexico)
Divested Shanghai Elsker Mother & Baby Co. Ltd to Johnson & Johnson
Divested Radiant Research Inc, US-based clinical research company
Divested medical supply business to Halma in the UK
Established an animal vaccine JV with Jilin Guoyuan Animal Health