Bain Capital joins the competition to acquire Piramal Glass


Worldwide private equity Bain Capital has joined the competition to gain a controlling stake in Ajay Piramal-advanced Piramal Glass Private Limited (PGPL). As per individuals referred, Bain Capital’s offer which came over the end of the week is higher than rival Blackstone’s group bidding offer which has offered near $790 million for the organization.

One of the individuals referred that Bain capital is a late participant yet has made a higher offer which is near $900 million for the organization. Piramal group is looking for a valuation of around $1 billion in big business value.

Blackstone’s offer is valid till November 4 and Bain is relied upon to make a bidding offer at that point. Additionally, Blackstone and Bain, there are two additional bidders in the race. PGPL is a main part of the worldwide glass packaging industry having seven subsidiaries, of which two are Piramal Glass Ceylon PLC and Piramal Glass USA Inc, having to produce units in Sri Lanka and the US, individually. PGPL has five assembling or manufacturing units, two each in India and the US, and one in Sri Lanka, with a complete production capacity of 1,410 tons for every day as of March 31, 2019.

The exchange, when it goes, however, will check another stake divestment by the Piramal group which is hoping to support the capital base of its real estate, pharma, and money-related services organizations through stake deals in non-core organizations. In October 2019, the group’s leader entity Piramal Enterprises had raised ₹5,400 crores through a blend of rights issue of ₹3,650 crore and preferential allotment of convertible instruments to Canadian annuity fund manager Caisse de dépôt et placement du Québec (CDPQ), adding up to ₹1,750 crores.

In October this year, Piramal Pharma Ltd, an auxiliary of Piramal Enterprises Ltd (PEL), finished the offer of a 20% stake to US-based private equity giant Carlyle Group for ₹3,523.40 crores. Piramal group has said that the returns from the deal will be utilized as development capital for the group’s pharma organizations to extend existing limits just as to tap appealing securing opportunities inside and outside India. While demands for input to Piramal group and Blackstone stayed unanswered until press time, a representative for Bain Capital declined to remark. The beginning of the pandemic has prompted a rise in demand for the worldwide packaging industry across sections.


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