Private equity major Blackstone has signed a deal to acquire Piramal Glass for around $1 billion.
This will be the second billion-dollar deal by Piramal Group this year to capitalise the group which has a large NBFC arm.
About Piramal Group
Piramal Glass Pvt Ltd is a specialist in the design, production and decoration of glass packaging for pharmaceuticals, cosmetics and perfumery, and specialty food and beverage.
Piramal Glass is a part of the $10 billion Piramal Group.
The group has raised Rs 18,000 crore funds since July 2019.
The company has business across 65 countries.
About Blackstone
Blackstone is a major asset manager in India, having invested around $16 billion.
In 2019-20, Blackstone private equity invested $2.5 billion in India and executing India’s largest buyout in financial services – Aadhar Housing Finance for $470 million.
This year, Blackstone sold a 23% stake in packaging firm Essel Propack Ltd. for $252 million.
Transaction details
Blackstone will make an upfront payment of $850 million and take over the ownership and management of Piramal Glass.
The remaining $150 million will be paid after Piramal Glass achieves certain business milestones, to be paid over two years.
Company’s Financial
During fiscal 2020, Piramal Glass recorded a revenue of $293 million.
Between FY2017 and FY2020, the company’s revenue grew at a CAGR of 5.3%, while EBITDA increased at a CAGR of 9.7%.
Similar past events
Earlier in this year, the group had sold US-based DRG for around a billion dollars.
Piramal has taken many steps to raise funds via a rights issue, CDPQ investments, sale of a minority stake in Piramal Pharma to Carlyle.
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