Covington Represents Piramal in $490M Sale of Stake in Pharmaceutical Unit

Jul 08, 2020

June 27, 2020

Posted by Covington and Burling LLP

WASHINGTONCovington represented Piramal Enterprises Limited (PEL) in the sale of a 20% stake in Piramal Pharma Limited (Piramal Pharma), a wholly owned subsidiary of PEL that will contain its pharmaceutical businesses, to CA Clover Intermediate II Investments, an affiliated entity of CAP V Mauritius Limited, an investment fund managed and advised by affiliated entities of The Carlyle Group Inc. The deal is valued at approximately $490 million based on net debt and the exchange rate as of March 31, 2020 (excluding an upside component of up to $360 million depending on FY21 performance).

Piramal Pharma will include: (a) Piramal Pharma Solutions, an end-to-end contract development and manufacturing (CDMO) business; (b) Piramal Critical Care, a complex hospital generics business selling specialized products across over 100 countries; (c) Consumer Products Division, a consumer healthcare business selling over-the-counter products in India; and (d) PEL’s investment in its joint venture with Allergan India, a leader in ophthalmology in the domestic market and in Convergence Chemicals Private Limited.

This transaction is one of the largest private equity deals in the Indian pharmaceutical sector and is expected to close in 2020, subject to customary closing conditions and regulatory approvals.

PEL is one of India’s largest diversified companies, with a presence in financial services and pharmaceuticals. PEL’s pharmaceuticals business has end-to-end manufacturing capabilities across 13 global facilities and a large global distribution network in over 100 countries, sells a portfolio of differentiated pharmaceutical products, and provides an entire pool of pharmaceutical services (including for injectables and high-potency API).

The Covington team included Ralph VoltmerBrian Yang, and Chul Hun Lee (corporate), Michael SternStephanie Resnik, and Benjamin Weksberg (food & drug regulatory), Sarah CowlishawAdem KoyuncuKatharina Ewert, and Raj Gathani (EU regulatory), Robin Blaney (EU life sciences transactions), Mike McLaren and Chloë Taylor (South Africa corporate), Jan Friedeborn (Germany corporate), Denitsa Marinova (UK corporate), Don ElliottThomas Brugato, and Lindsay Brewer (environmental), Michael FranceseChris BracebridgeBrady McDaniel, and Antonio Michaelides (employee benefits), Winslow Taub and Brandon Palmen (intellectual property), Kathleen Gallagher-Duff (trademarks), Heather HaberlHilary PrescottGeraldine Pigot, and Adam Osielski (real estate), Kurt Wimmer and Hannah Lepow (data privacy), Kim StrosniderJoshua Williams, and Dana Watts (export control), and Donald Ridings, and Sarah Crowder (anti-corruption).

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