CA Clover Intermediate II Investments, an affiliated entity of CAP V Mauritius Limited, an investment fund managed by affiliated entities of The Carlyle Group, will infuse fresh capital worth approximately USD 490 million (Rs 3,705.7 crore) in Piramal Pharma, a wholly-owned subsidiary of Piramal Enterprises Limited (PEL). The 20 per cent stake sale is expected to close in 2020, subject to customary closing conditions and regulatory approvals.
The company stated 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, PEL informed.
Ajay Piramal, Chairman, PEL, said, “We are pleased to announce the strategic growth investment by Carlyle, a marquee global investor, in Piramal Pharma. This is an affirmation of the strength of our ability to build new, attractive and scalable businesses with a significant runway for continued organic growth and opportunities for consolidation. This infusion of funds will further strengthen our balance sheet and provide us with a war chest for the next phase of our strategy.”
Neeraj Bharadwaj, Managing Director, Carlyle Asia Partners advisory team, said, “Piramal Pharma has built a strong, diversified pharma business with a solid market position and scale in each of its core business segments of Pharma Solutions, Critical Care and Consumer Products. Given global pharma industry trends, we see attractive opportunities for organic as well as inorganic growth in each of these businesses.”
In 2010, PEL sold its domestic pharma business to Abbott for USD 3.8 billion. PEL’s pharma revenue since the Abbott deal has grown 3.5 times at a CAGR of 15 per cent from Rs 1,537 crore in FY11 to Rs 5,419 crore in FY20. In this period, the pharma business EBITDA has gone up 13.0 times at a CAGR of 33 per cent from Rs 110 crore in FY11 to Rs 1,436 crore in FY20 (excluding financials of Allergan and CCPL JV).
