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Piramal finds long-sought investor for $490M boost to M&A war chest

With its eyes set on making a big M&A splash, Indian drugmaker Piramal Pharma has been working for months to bring a major investor on board to fund its plans. The search is now over. 

Washington, D.C.-based The Carlye Group will acquire a 20% stake in Piramal Pharma that will flush around $490 million into the Indian drugmaker’s strategic war chest to fund future expansion plans, Piramal said Saturday. 

Piramal Pharma, a subsidiary of Piramal Enterprises, expects to close the transaction sometime this year and plans to use the proceeds from its stake sale to help fund future deals. Piramal will consolidate all of its pharma units under the Piramal Pharma umbrella, including the Piramal Pharma Solutions CDMO as well as hospital generics and OTC units.

“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 Chairman Ajay Piramal said in a release. “This infusion of funds will further strengthen our balance sheet and provide us with a war chest for the next phase of our strategy.”

For Carlyle, the Piramal investment underscored the importance of the Indian market in its global portfolio.

“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,” Greg Zeluck, co-head of Carlyle’s Asia Partners advisory team, said in a statement. 

RELATED: Piramal CDMO closes in on private equity deal to raise up to $500M: report

Carlyle’s major investment will bring to a close Piramal’s months-long search for a major investor to underwrite the next phase of its growth plan. 

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