Affiliates of the private-equity firm, The Carlyle Group, have agreed to acquire a 20% stake in Piramal Pharma Limited, the pharmaceutical business of Piramal Enterprise Limited, which includes Piramal’s CDMO business, Piramal Pharma Solutions, and select pharmaceutical assets, for approximately $490 million.

For purposes of the transaction, Piramal Pharma includes (1) Piramal Pharma Solutions, Piramal’s CDMO business, (2) Piramal Critical Care, a hospital generics business selling specialized products in more than 100 countries; (3) Piramal’s Consumer Products Division, a consumer healthcare business selling over-the-counter products in India; and (4) Piramal Enterprises Limited’s investment in a joint venture with Allergan India, a provider of ophthalmology products in India, and Convergence Chemicals Private Limited, a mining and metals company based out of Gujarat, India.

The transaction values Piramal’s pharma business at an enterprise value of $2.775 billion with an upside component of up to $360 million depending on the company’s FY 2021 performance. Based on the enterprise value (excluding the upside component), exchange rate, and pharma net debt as March 31, 2020, the estimated equity capital investment for Carlyle’s 20% stake in Piramal Pharma is approximately $490 million. The final amount of equity investment will depend on the net debt, exchange rate, and performance against pre-agreed conditions at the time of closing of the deal. The transaction is expected to close in 2020 and is subject to customary closing conditions and regulatory approvals.

CA Clover Intermediate II Investments, an affiliated entity of CAP V Mauritius Limited, an investment fund managed and advised by affiliated entities of The Carlyle Group, is making the investment. Piramal Enterprises Limited, with positions in financial services and pharmaceuticals, had consolidated revenues of approximately $1.7 billion in FY 2020,

Source: Piramal and The Carlyle Group