Blackstone to make an upfront payment of $850m to acquire the management and ownership of Piramal Glass and around $150m in payouts on achieving certain business milestones
Piramal Glass manufactures container glass packaging solutions. (Credit: Dariusz Sankowski from Pixabay)
US-based private equity firm Blackstone Group has agreed to acquire Piramal Group’s glass unit, Piramal Glass, in a deal worth $1bn.
As per the terms of the deal, Blackstone has agreed to make an upfront payment of $850m to acquire the management and ownership of Piramal Glass. It will also pay approximately $150m in payouts on realising milestones over two years.
Piramal Glass is engaged in manufacturing container glass packaging solutions for perfumery, cosmetics, beverages, speciality food, and pharma industries. It operates factories across 65 nations, including India, US, and Sri Lanka.
The latest deal follows Blackstone’s sale of 23% stake in India-based tube-packaging company unit Essel Propack (EPL) for $252m through open market transactions.
In February this year, Piramal Glass announced plans to invest INR3bn ($42m) for the expansion of its green-field project in Jambusar, Gujarat.
The investment will be used for the installation of one new furnace of 250 tonnes per day with seven new manufacturing lines at the 300,000ft² plant and create an additional 700 jobs.
Featuring three furnaces with 23 manufacturing lines, the Jambusar plant has the capacity to produce 540 tonnes per day of glass.
The expansion forms part of the company’s plan to meet the increasing demand for glass packaging from customers in spirit, food & beverage and pharmaceutical markets primarily for exports to countries in Asia, Europe and the US.
In January this year, PEL DRG Dutch, a subsidiary of Piramal Enterprises (PEL) and the holding company for Decision Resources Group (DRG), agreed to sell DRG to US-based Clarivate Analytics for $950m.