WASHINGTON—Covington 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 Voltmer, Brian Yang, and Chul Hun Lee (corporate), Michael Stern, Stephanie Resnik, and Benjamin Weksberg (food & drug regulatory), Sarah Cowlishaw, Adem Koyuncu, Katharina 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 Elliott, Thomas Brugato, and Lindsay Brewer (environmental), Michael Francese, Chris Bracebridge, Brady McDaniel, and Antonio Michaelides (employee benefits), Winslow Taub and Brandon Palmen (intellectual property), Kathleen Gallagher-Duff (trademarks), Heather Haberl, Hilary Prescott, Geraldine Pigot, and Adam Osielski (real estate), Kurt Wimmer and Hannah Lepow (data privacy), Kim Strosnider, Joshua Williams, and Dana Watts (export control), and Donald Ridings, and Sarah Crowder (anti-corruption).