Piramal sells DRG biz to US firm for $950 m

New Delhi, January 17

Ajay Piramal-led Piramal Enterprises has signed an agreement for sale of its Decision Resources Group (DRG) business to US-headquartered Clarivate Analytics for $950 million (over Rs 6,745 crore), and will use the money to reduce debt and to explore organic and inorganic growth opportunities.

The transaction is expected to be completed by the end of February 2020, Piramal Enterprises Limited (PEL) said in a statement.

PEL DRG Dutch HoldCo BV, a 100% subsidiary of PEL and the holding company for DRG, has signed a definitive agreement for sale of DRG to Clarivate Analytics for a consideration of $950 million, it added.

This includes $900 million on closing and $50 million to be received at the end of 12 months from the date of closing, said.

On being asked about how the company plans to use the sale proceeds, Piramal Group Chairman Ajay Piramal said it would be used to reduce debt and to explore organic and inorganic growth opportunities.

We will use it to reduce debt and also to grow our existing businesses as well as look at some inorganic opportunities, he added.

As a company, "we have always believed that we should do what is in the best interest of shareholders and therefore if we feel the value that we can get by selling the business is good, we do it," Piramal said.

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

"We are pleased to have grown DRG's market leadership over the past few years and believe that through this combination, Clarivate, with its size and scale, is well positioned to further accelerate DRG's growth potential," Piramal said. — PTI