Blackstone to acquire Piramal Glass for $1 billion
US-based private equity major Blackstone Group Inc will pay an upfront amount of $850 million to take over the management and ownership of Piramal Glass
BusinessToday.In | December 11, 2020 | Updated 17:36 IST
Blackstone is a major asset manager in India, with investments worth around $16 billion (excluding the Piramal Glass deal) to date
US-based private equity major Blackstone Group Inc has inked a deal to acquire Piramal Enterprises Ltd. s (PEL) glass unit for $1 billion (around Rs 7,500 crore).
The transaction comprises an upfront payment of $850 million to take over the management and ownership of Piramal Glass, whereas, the Piramal Group will get about $150 million on realising certain milestones, to be paid over the course of two years, the Mint reported.
Blackstone set to buy Piramal Glass for $1 billion
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Blackstone will make an upfront payment of $850 million and take over the ownership and management of Piramal Glass. (Photo: Company website)
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The deal will allow Blackstone to gain from the global shift towards recyclable glass bottles
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Private equity giant Blackstone has agreed to acquire Piramal Glass, the glass packaging business of the diversified Piramal Group, at an enterprise value of $1 billion, said three people with direct knowledge of the deal.
Blackstone will execute the deal in two tranches, as part of the agreement signed between the two parties on Thursday evening, said one of the three persons mentioned above. The New York-based PE firm will first pay $850 million and assume ownership and management control of Piramal Glass. The remaining $150 million will be paid after Piramal Glass achieves certain business milestones.
Synopsis
Blackstone will be paying $800 million upfront and another $200 in future pay outs linked to performance linked milestones over the next 2-3 years, said people aware of the discussions. The manufacturing operations that Blackstone will acquire in this transaction located in the Asia, namely India and Sri Lanka.
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Piramal Glass, a private company of Ajay Piramal that the billionaire businessman now considers non-core in his portfolio even as the world’s largest PE firm sees demand for specialised glass increasing in the terms of pandemic. The company is one of the four players globally to have type 1 pharma glass capabilities used for complex pharma products like liquid injectable drugs which on the eve of the Covid vaccine rollout is expected to see a demand surge.