Piramal Profits As It Sheds DRG To Clarivate For $950m

Just over a decade after the sale of the Piramal group’s formulations business to Abbott Laboratories Inc., chairman Ajay Piramal has stitched up another profitable deal. Piramal Enterprises Ltd. (PEL) is selling its stake in fully owned Decision Resources Group (DRG), a healthcare research and consulting company, to Clarivate Analytics Plc for $950m.

The divestment gives PEL $900m in cash and an undefined stake in Clarivate worth $50m post a year of the deal closure. PEL realized 2.3 times its initial equity investment on Indian rupee terms after acquiring DRG from private equity firm Providence Equity Partners in 2012 for $650m, of which $260m was infused as equity