Indonesia Herbal Remedies Firm Owners Weighing $500 Million Sale
(Bloomberg) -- The owners of PT Deltomed Laboratories are exploring a sale of the Indonesian herbal remedies manufacturer and distributor in a deal that could value the company at about $500 million, according to people with knowledge of the matter.
Indonesian buyout firm PT Saratoga Investama Sedaya and the Rahardjo family are working with an adviser on the potential divestment, said the people, who asked not to be identified as the process is private. The sellers began sounding out potential buyers last week, said the people.
The company is projecting 36% growth in revenue this year with an estimated gross margin of 65%, according to a marketing document seen by Bloomberg News.
Deliberations are ongoing and there is no certainty that the deal will proceed, said the people.
A Saratoga representative said the firm continues to find the best options for its shareholders by studying all bids and positions before making investment and divestment decisions at the right moment. A representative for Deltomed declined to comment, while the Rahardjo family couldn’t be reached via Deltomed.
Founded in 1976, Deltomed’s products include Antangin, used to relieve upset stomachs, and OB Herbal, a cough remedy, as well as herbal supplements sold under the Herbana brand, according to its website.
The company was bought in 1988 by Purwanto Rahardjo, and his eldest son Mulyo Rahardjo -- the current chief executive officer -- took over in 1992, the website shows.
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