978907 aurobindo

Aurobindo Pharma has inked a pact to divest Natrol — a wholly-owned unit of its US-based subsidiary — to private equity firm New Mountain Capital for $550 million (around Rs 4,048 crore). It was acquired by Aurobindo Pharma in 2014.

The drug firm has reached a definitive agreement to sell Natrol, a unit of Aurobindo Pharma USA, Inc., to an affiliate of New Mountain Capital to combine with Jarrow Formulas.

Aurobindo Pharma Managing Director N Govindarajan said, “Aurobindo is committed to evaluating and concluding strategic options towards focussed 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.

Natrol was founded in 1980 as a cosmetic company. It has evolved over the past several decades into a pioneer in nutraceuticals segment.  Natrol has been a consistently profitable business, growing on all fronts under Aurobindo’s ownership, the drug firm said.

Jefferies served as the sole financial adviser and Sullivan & Cromwell LLP acted as legal counsel to Aurobindo.

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

The that proceeds from Natrol’s divestiture will be used to reduce debt and other new strategic initiatives


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