Business

Piramal Enterprises sells overseas arm for $950 million

File photo of Ajay Piramal

File photo of Ajay Piramal   | Photo Credit: SHASHI ASHIWAL

Company’s move aimed at unlocking value in future

Piramal Enterprises Ltd. (PEL) said that PEL DRG Dutch HoldCo BV, its 100% subsidiary and holding company of Decision Resources Group (DRG), has signed an agreement for the sale of DRG to Clarivate Analytics Plc. for $950 million.

The amount includes $900 million to be paid on closure of deal and $50 million payment to be made at the end of 12 months from the date of closing.

The transaction is expected to be completed by end-February 2020.

PEL had initially invested $650 million in 2012 to acquire DRG out of which $260 million was infused as equity. The deal has realised 2.3 times its initial equity investment in rupee terms, according to PEL.

Stronger balance sheet

Ajay Piramal, chairman, Piramal Group, said, “This transaction demonstrates our continued commitment to create sustained long- term value for all stakeholders. Along with the ongoing equity capital raise in PEL, this transaction not only further strengthens the company’s balance sheet but also marks another step towards significantly unlocking value in future.”

Jerre Stead, executive chairman and CEO, Clarivate Analytics, in a statement, said, “This is a milestone acquisition which doubles the size of our life sciences business, is accretive to our 2020 earnings and sets us up as an essential, end-to-end, industry-leading data and analytics provider in the highly attractive life sciences ecosystem.”

“Both the companies have a great heritage, built on talented people with deep industry subject matter and technical expertise.

“Together, we look forward to unlocking the tremendous potential of a unified team,” he said.

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Printable version | Feb 28, 2020 6:57:52 PM | https://www.thehindu.com/business/Industry/piramal-enterprises-sells-overseas-arm-for-950-million/article30588972.ece

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