TA Associates has completed an investment in Ideal Cures, a supplier of ready-to-use coating products and excipients for tablets and capsules used by the pharmaceutical industry. An excipient is a substance formulated alongside the active ingredient of a medication for the purpose of stabilization, or to enhance absorption and reduce viscosity.
Ideal Cures’ products are used to provide aesthetic coatings as well as functional coatings for tablets and capsules. Aesthetic sugar or film coatings allow for swallowability and taste masking. They also aid brand recognition, authentication and differentiation. Functional coatings serve a number of purposes ranging from moisture, oxygen and light protection of drugs to controlling drug delivery to a specific part of the gastrointestinal tract. The company also produces specialty excipients such as neutral pellets, cooling compounds, taste masking agents, controlled release polymer blends and pharma acrylic polymers.
Ideal Cures sells its products to pharmaceutical, nutraceutical, herbal and ayurvedic (a form of Indian holistic medicine) companies in 40 countries. The company was founded in 1999 in India and has three manufacturing plants located in Vasai, Jammu and Khambat; and two research and development facilities in Mumbai and Vasai. Another plant is under construction in Sikkim. The company is led by Suresh Pareek, its founder and Managing Director (www.idealcures.co.in).
TA Associates believes that with the pharmaceutical industry the trend is to outsource the production of ready-to-use, fully-formulated coatings, a trend that is being driven most notably by companies seeking to reduce processing time and its carbon foot. “We believe that the film coating industry is a unique, yet evolving sector that has strong potential for growth globally,” said Naveen Wadhera, a Managing Director at TA Associates. “We expect that there are significant opportunities for expansion and are eager to help Ideal Cures further develop and enhance its brand and internal capabilities.”
“We believe that Ideal Cures has a robust business strategy, and over the last few years has emerged as a provider of high quality products and services in the tablet coating space, with a vast and diversified customer base globally,” said Dhiraj Poddar, Country Head of India, TA Associates Advisory Private Limited. “Ideal Cures has worked diligently to innovate solutions that meet the needs of the pharmaceutical and allied industries, building exceptional manufacturing, research and development, and technical services capabilities to rapidly expand their operations. We are thrilled to have the opportunity to partner with Ideal Cures and we look forward to helping their experienced team to drive growth.”
TA Associates makes buyouts and minority recapitalizations of profitable growth companies in the technology, financial services, business services, healthcare, and consumer industries. Since founding in 1968, TA has invested in over 480 companies globally and has raised more than $18 billion in capital. The firm has offices in Boston, Menlo Park, London, Mumbai and Hong Kong (www.ta.com).
“By joining with TA Associates, Ideal Cures aims to leverage TA’s networking and other corporate development capabilities to accelerate growth in not only some of the fastest growing regions, like South Asia, but also in well established markets around the world,” said Kamlesh Oza, President – Global Business Development at Ideal Cures.
KLaw (Krishnamurthy & Co. (www.klaw.in)) served as legal counsel to Ideal Cures and DSK Legal (www.dsklegal.com) served as legal counsel to TA Associates.
© 2017 Private Equity Professional | March 14, 2017
