CII approves Carlyle’s acquisition of stake in Piramal Pharma for $490m

The Competition Commission of India (CCI) has approved the sale of 20% of the issued and paid-up equity share capital in Piramal Pharma, a subsidiary of Piramal Enterprises, to Carlyle Group for approximately $490m.

Carlyle will make the acquisition through CA Clover Intermediate II Investments (Curie), a special purpose acquisition vehicle operated by investment funds advised by the Carlyle affiliates.

The approval comes after Piramal Enterprises and Carlyle entered into an agreement for the deal in June. The investment amount might vary based on the net debt, exchange rate and performance at the time of closing of the transaction.

Commenting on the agreement, Piramal Enterprises chairman Ajay Piramal said: “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.”

Piramal Pharma includes a contract development and manufacturing organisation called Piramal Pharma Solutions, and a complex hospital generics business named Piramal Critical Care, which markets products in more than 100 countries.

It also comprises Consumer Products Division, which sells over-the-counter healthcare products in India. In addition, Piramal Pharma includes Piramal Enterprises’ investment in the joint venture with Allergan India and Convergence Chemicals.

Carlyle Asia Partners advisory team co-head Greg Zeluck said: “This investment marks the beginning of an important partnership with the Piramal family, and further underscores our commitment to the Indian market.

“India is a hugely strategic part of Carlyle’s Asia business and a market where we continue to see many attractive investment opportunities where we believe we can collaborate with management teams to drive long-term value for companies and stakeholders.”

In June last year, Piramal Pharma Solutions made an investment to expand the high-potency active pharmaceutical ingredient (HPAPI) production capability of its Riverview facility in the US.