Piramal Pharma completes 20 pc growth investment by Carlyle
Oct 06, 2020
Mumbai (Maharashtra) [India], Oct 6 : Piramal Pharma Ltd (PPL) on Tuesday received Rs 3,523 crore on closure of the transaction for 20 per cent equity investment from CA Alchemy Investments, an affiliated entity of CAP V Mauritius, which is an investment fund managed and advised by affiliated entities of the Carlyle Group Inc.
The transaction values the business at an enterprise value of USD 2.77 billion with an upside component of up to USD 360 million, depending on the company's FY21 performance.
This transaction is one of the largest private equity deals in the Indian pharmaceutical sector. It provides PPL growth capital that enables it to invest in accelerated business growth through both organic and inorganic opportunities, the company said in a statement.
PPL's business now effectively includes Piramal Pharma Solutions, Piramal Critical Care, consumer products division and Piramal Enterprises' investment in the joint venture with Allergan India, a leader in ophthalmology in the domestic market, and Convergence Chemicals.
"Our track record of agility, transparency and robust corporate governance has enabled a seamless and earlier than committed timelines for the entire process," said Nandini Piramal, Executive Director of Piramal Enterprises.
"We are now excited about the enhanced opportunities ahead and look forward to leveraging Carlyle's deep expertise and global strengths to bolster our growth plans," she said.
The fresh growth investment into Piramal's pharma business will be used as growth capital to expand capacity across sites as well as to tap attractive acquisition opportunities within and outside India.
In the interim, the proceeds from capital raise will also enable further strengthening of the company's balance sheet through deleveraging in the near term.
