Carlyle to buy 20% stake in Piramal Pharma in $2.8 billion deal

By: |
June 28, 2020 4:15 AM

The transaction, which is one of the largest private equity deals in the Indian pharmaceutical industry, values the pharma business at an enterprise value of $2.8 billion and will have an upside component that could take the EV to $3.1 billion depending on the company’s FY21 performance.

The transaction, which is one of the largest private equity deals in the Indian pharmaceutical industry, values the pharma business at an enterprise value of $2.8 billion.

IN A $2.8-BILLION deal, Piramal Enterprises (PEL)will be selling 20% stake in Piramal Pharma, which has been made a 100% subsidiary of PEL housing its pharmaceutical businesses, to affiliated entities of The Carlyle Group, the company announced on Saturday. CA Clover Intermediate II Investments, an affiliated entity of CAP V Mauritius, an
an investment fund managed and advised by affiliated entities of The Carlyle Group, has agreed to invest fresh equity capital for a 20% stake in Piramal Pharma.

The transaction, which is one of the largest private equity deals in the Indian pharmaceutical industry, values the pharma business at an enterprise value of $2.8 billion and will have an upside component that could take the EV
to $3.1 billion depending on the company’s FY21 performance.

Equity value as on March 31 for 20% stake in Piramal Pharma would be about $490 million, or Rs  3,700 crore. The final amount of equity investment will depend on the net debt, exchange rate and performance against the pre-agreed conditions at the time of closing of the deal.

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