US-based private equity major Blackstone Group Inc will pay an upfront amount of  $850 million to take over the management and ownership of Piramal Glass.

US-based private equity major Blackstone Group Inc has inked a deal to acquire Piramal Enterprises Ltd.'s (PEL) glass unit for $1 billion (around Rs 7,500 crore).

The transaction comprises an upfront payment of $850 million to take over the management and ownership of Piramal Glass, whereas, the Piramal Group will get about $150 million on realizing certain milestones, to be paid over the course of two years, the Mint reported.

This will be Piramal Group's second billion-dollar deal this year to capitalize the conglomerate which has a large NBFC unit. The group had earlier this year sold US-based DRG, a 100% subsidiary of PEL, to US-based Clarivate Analytics for $950 million.

Piramal Glass manufactures container glass packaging solutions for perfumery, cosmetics, beverages, specialty food, and pharma industries, and has factories across 65 nations including India, the US, and Sri Lanka.

Meanwhile, Blackstone's acquisition of Piramal Glass follows its 23% stake sale in specialty packaging company Essel Propack earlier this year.

"The current management team, led by Vijay Shah (CEO & President, Piramal Glass), is terrific. Blackstone will support the team with various in-house and industry experts, including Uwe Roehrhoff, who has been familiar with the company for 20 years, and Harish Manwani of Unilever, who has been a customer of Piramal Glass for over two decades," one of the sources told the publication.


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