Carlyle Group will purchase a 20% stake in Indian billionaire Ajay Piramal’s pharmaceutical business, according to an exchange filing.

The private equity fund will pay $490 million for the holding, valuing the business at an enterprise value of $2.7 billion. In addition to helping expand capacity of the pharmaceutical operations, the Piramal group will use the money to repay some of parent Piramal Enterprises Ltd.’s debt, the filing said.

“This infusion of funds will further strengthen our balance sheet and provide us with a war chest for the next phase of our strategy,” Ajay Piramal, chairman of Piramal Enterprises, said in the filing.

In May, Carlyle agreed to buy up to 74% of SeQuent Scientific, the largest pure-play animal healthcare company in India.

Source: Bloomberg

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