Carlyle Pays $490M for 20% of Piramal Pharma

Washington, D.C.-based investment firm The Carlyle Group has purchased a 20% stake in Piramal Pharma for $490 million.

Piramal Pharma, a subsidiary of Piramal Enterprises, includes Piramal Pharma Solutions, an end-to-end contract development and manufacturing (CDMO) business; Piramal Critical Care, a complex hospital generics business selling specialized products across over 100 countries; a consumer products division in India; and Piramal Enterprises investment in a joint venture with Allergan India.

This transaction is one of the largest private equity deals in the Indian pharmaceutical sector, and is expected to close in 2020.

“We are pleased to announce the strategic growth investment by Carlyle, a marquee global investor, in Piramal Pharma,” said Ajay Piramal, chairman, Piramal Enterprises Limited. “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. We are pleased to have an investor of this caliber join the Piramal family and continue our stellar track record of partnerships.”

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. We are excited to work with the company’s experienced management team, and will leverage our global network, extensive knowledge of the healthcare sector, and operating experience to seek to expand its platform, develop strategic opportunities and facilitate broader market access.”