The Carlyle Group (CG) announced that it has agreed to purchase a 20% stake in the pharmaceutical business of Indian Piramal Enterprises Ltd. for about $490 million.
Carlyle shares rose 3% to $27.25 in afternoon trading on Monday.
The deal values the pharma business at an enterprise value (EV) of $2.7 billion with an upside component of up to $360 million depending on the company’s FY21 performance. 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, the private equity fund said in a statement.
“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,” said Neeraj Bharadwaj, Managing Director at Carlyle Asia Partners. “Given global pharma industry trends,