Carlyle, Piramal Pharma sign agreement on 20% strategic growth investment

Diversified company Piramal Enterprises on Saturday said that it will integrate its pharma businesses into Piramal Pharma.

Piramal Pharma will include Piramal Pharma Solutions, Piramal Critical Care, Consumer Products Division, PEL's investment in the joint venture with Allergan India and Convergence Chemicals.

Further, the integrated entity will receive an estimated fresh equity capital worth around $490 million for a 20 per cent stake from global investment firm Carlyle Group's affiliated entity.

The transaction values the 'Pharma Business' at an enterprise value (EV) of $2,775 million with an upside component of up to $360 million depending on the company's FY21 performance, the diversified company said.

"Based on the EV (excluding the upside component), exchange rate and pharma net debt as on 31st March 2020, the estimated equity capital investment for Carlyle's 20 per cent stake in Piramal Pharma would amount to $490 million," the company said in a statement.

"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."