Carlyle buys a 20% stake in Piramal Pharma’s business

Passers-by walk in front of video monitors advertising the Carlyle Group listing on the NASDAQ market site in New York’s Times Square after the opening bell for trade, USA May 3, 2012. REUTERS / Keith Bedford / File Photo

(Reuters) – United States-based Carlyle Group Inc has agreed to buy a 20% stake in the pharmaceutical unit of Indian conglomerate Piramal Enterprises Ltd for approximately $ 490 million, the companies said in a statement on Saturday.

Piramal Pharma will use the capital injection to accelerate its organic and inorganic growth plans, according to the statement.

The investment comes a month after the private equity firm bought a majority stake in Indian animal health company SeQuent Scientific Ltd.

“India is an enormously strategic part of Carlyle’s business in Asia and a market where we continue to see many attractive investment opportunities,” said Greg Zeluck, co-chair of the Carlyle Asia Partners advisory team.

Earlier this month, the Economic Times of India reported that Carlyle had emerged as the leader for a minority stake in business magnate Ajay Piramal’s pharmaceutical unit, with US private equity firms TA Associates and KKR & Co Inc also presenting offers for the 20% stake.

The transaction is expected to close in 2020.

Report by Maria Ponnezhath in Bangalore; William Mallard and Richard Pullin edition

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