Blackstone Group Inc. has struck a deal to acquire Piramal Glass Pvt. Ltd at an enterprise valuation of Rs 7,500 crore (about $1 billion), outbidding many other private equity firms for the glass packaging company.
The sale of the unit of billionaire Ajay Piramal-led Piramal Group is the largest-ever transaction for a packaging company in India, Axis Capital, which was the advisor on the deal, said in a statement.
Axis Capital also said that the transaction process was launched after the Covid-19 outbreak and managed to overcome the constraints imposed by the “unusual” business and operating environment.
The process involved reaching out to more than 50 potential buyers in India and overseas, Axis Capital said, adding that the process evinced “strong competitive interest” from multiple marquee investors.
The investment banking firm didn’t name the other investors who were interested in Piramal Glass. However, VCCircle previously reported that US-based PE firm Bain Capital and Swiss investment firm Partners Group were among those in the race.
American private equity firms Lone Star Funds and Apollo Global Management as well as Indian PE firm Multiples Alternate Asset Management were also in the race earlier but dropped out, VCCircle reported previously.
Piramal Glass designs and manufactures glass packaging products for cosmetics, food and beverage, and pharmaceutical industries. In February, it announced an investment of Rs 300 crore to expand a factory in Gujarat.
For Blackstone, this is its second billion-dollar deal in India this year. Last month, the world’s biggest PE firm signed a binding term sheet with Bengaluru-based Prestige Project Estates Ltd to acquire commercial, retail and hotel properties for about $1.23 billion.
For Piramal Group, the deal adds to its two previous asset sales this year as it looks to cut debt and raise capital for expansion. The healthcare-to-financial services group had in January sold healthcare analytics unit Decision Resources Group to US-based Clarivate Analytics Plc for $950 million. In June, the group agreed to sell a 20% stake in unit Piramal Pharma Ltd to US-based private equity giant Carlyle Group for Rs 3,523.40 crore (around $490 million).