Aurobindo Pharma to divest Natrol to New Mountain Capit

Aurobindo  Pharma has reached a definitive agreement to sell Natrol, a wholly owned subsidiary of Aurobindo  Pharma  US,  to  an affiliate of New Mountain Capital to combine with Jarrow Formulas.

The all-cash transaction is valued at US $ 550 million (or Rs 4,048 Cr at the current exchange rate). Subject to customary closing conditions and regulatory approvals, the transaction is expected to close by January 2021.

Natrol’s annual sales for the 12 months ended March 31 2020 was approximately US $ 157 Million.

Following the acquisition of the assets of Natrol by Aurobindo Pharma in December 2014, Natrol has been a consistently profitable business, growing on all fronts under Aurobindo’s ownership.

“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.” “On behalf of Aurobindo Group, my heartful thanks to all stakeholders including employees, who have supported in acquiring and bringing Natrol to a growth path in the past 6 years,” said N Govindarajan, Managing Director, Aurobindo Pharma.

He also said “Proceeds from Natrol’s divestiture will be used to reduce debt and other new strategic initiatives.” Jefferies  served  as  the  sole  financial  advisor to Aurobindo,  and  Sullivan  &  Cromwell  LLP  acted  as  legal counsel to Aurobindo.