The World’s largest alternative equity firm, Blackstone Group Inc, has signed an agreement to acquire Piramal Group’s Piramal Glass including its unit in Sri Lanka for an estimated $1 billion.
According to the agreement, Blackstone would be making an upfront payment of $850 million while Piramal Group would get the remaining $150 million on achieving certain milestones over the next 2 years.
In a market disclosure to Colombo Stock Exchange (CSE), Pirmal Glass Ceylon PLC that it was valued at INR 5.1 billion ( $69.3 million) in the deal.
“The indebtedness of the company, the net debt of the company, and a working capital adjustment to be computed,” it stated.
Piramal Glass makes container glass packaging with a capacity of 1,475 tons per day. It has factories in the United States, India, and Sri Lanka.
Axis Capital and Bank of America had been advisors within the sale course.
Piramal Group has been divesting some of its non-core business as it raises equity for the group’s Non-Banking Financial Institute, Piramal finance.
In 1999, Piramal Group acquired Ceylon Glass Company and was renamed Pirmal Glass Ceylon PLC.