SeQuent Scientific Limited (SeQuent), India's leading animal health company with a strong presence in veterinary formulations and APIs, has signed a definitive agreement on 07 November 2022 to acquire 100% stake in Tineta Pharma Private Limited (Tineta), a company incorporated in India.

India is a strategic market for SeQuent, and this acquisition will give a significant fillip towards rapid expansion of India formulations business, which stands to gain from a stronger foothold in the livestock segment. The acquisition is for an enterprise value of Rs. 218 crores, which will be paid as cash consideration of Rs. 153 crores and preferential allotment of SeQuent's equity shares of Rs. 65 crores. The transaction is subject to customary closing conditions and is expected to close in Q4 FY23.

Tineta, founded by Vipin Chandan, Pradeep Verma and Shreekant Inamdar, has a well-established presence of more than 25 years in the Indian market, specializing in the livestock segment. The business has also established a premium "Vitum" brand in the nutritional segment with strong customer loyalty and a robust commercial engine. Tineta's revenues stood at INR 81 Crores in FY22, delivering double digit y-o-y growth. Post the transaction closing, one of the three promoters of Tineta, Vipin Chandan will work with SeQuent team to transition and support the business integration, and SeQuent will execute a separate transition agreement for such services through Tineta.

Rajaram Narayanan, Managing Director & CEO of SeQuent commented "Tineta brings a portfolio of more than 30 brands across nutritional supplements as well as therapeutic formulations, a 270+ strong field force, supported by a deep distribution network and long-standing manufacturing partnerships. We are excited to welcome Tineta's experienced business team into the SeQuent family. The acquisition will be immediately accretive for SeQuent, significantly scaling up SeQuent's commercial presence in India with near doubling of current India revenues, adding a wide range of complementary capabilities to SeQuent's portfolio and significant on ground presence. With the addition of Tineta, SeQuent India's fast-growing operations will have LTM (last twelve months) combined revenues of ~INR 190 Crores as of September 2022, strengthening SeQuent's position among the Top 10 animal health companies in India."

The Promoters of Tineta stated "Tineta has delivered robust sales growth over the last few years while maintaining efficient operations. The company has carved out a niche for itself in the Indian livestock market through its diverse portfolio of branded products and large customer base. With Tineta becoming part of SeQuent, the combined business will allow SeQuent to emerge as a stronger force to reckon with in the Indian veterinary market. We strongly believe that Tineta, its employees and all other stakeholders will benefit from SeQuent's global foothold in the animal health business and its vision to build an animal health powerhouse from India."

This transaction further builds on SeQuent's strong record of acquiring and successfully integratingmultiple companies across Europe, Emerging Markets, and India over the last 8 years, and reflects its continued commitment to drive rapid growth across our key markets in line with the SeQuent 2.0 strategy.