Global investment business, Blackstone Group Inc has entered into an agreement to acquire the glass unit of Piramal Enterprises Ltd. The value of the deal stood at $1 billion (approx. Rs 7,500 crore).
According to a report by the Mint – The private equity firm will first pay $850 million to assume responsibility of management and take over the ownership of the Piramal Glass. The report added – the Piramal Group will then receive $150 million which is to be paid over the course of two years on earning certain milestones.
“The current management team led by Vijay Shah (CEO and president, Piramal Glass), is terrific. Blackstone will support the team with various in-house and industry experts, including Uwe Roehrhoff (former CEO of Gerresheimer, a leading global partner to the pharma and healthcare industries), who is familiar with the company for 20 years, and Harish Manwani, formerly of Unilever, which has been a customer of Piramal Glass for more than two decades,” said a person aware of the deal to The Mint.
Blackstone is a US-based firm investing capital on behalf of pension funds, large institutions and individuals aiming to create long-term value for its investors through the stewardship of their capital. It invests across the alternative asset classes in private equity, real estate, credit and hedge funds as well as in infrastructure, life sciences, insurance, and growth equity.
Meanwhile, Piramal Enterprises Limited (PEL), a publicly listed company in India, has business interests in Financial Services and Pharmaceuticals. PEL’s consolidated revenues were ~US$1.7 billion in FY2020, with ~34% of
revenues generated from outside India.
-AK
Arya has been a part of the Content & Research Team at Hrnxt.com. She is a keen observer of economic developments, emerging businesses, people in business and keeps a tab on latest happenings in the business environment.