Brookfield looks to buy PGP Glass for up to $1.5 bn from Blackstone

Brookfield is in advance negotiations with Blackstone to acquire PGP Glass, for $1.3- $1.5 billion, a potential transaction that is set to involve two of the largest alternative asset managers for the first time in India, said multiple people in the know. A trade will help Blackstone, the world’s largest private equity buyout group, successfully exit their 6-year old investment.

A binding agreement is expected in the next 2-3 weeks, the people mentioned above added.

Blackstone, the world’s largest private equity buyout group, acquired the company in 2020 from billionaire Ajay Piramal for $765 million and has been exploring ways to sell the company since early 2024. As recently as this February, ET had mandated Axis Capital, Bank of America and HSBC as lead bankers for a proposed $400-500 million initial public offering (IPO) of the company in India, formerly Piramal Glass, ET had reported.

In parallel, it had mandated Jefferies to explore a sale of the business, which specialises in the design, production and decoration of glass packaging for industries including cosmetics and perfumery, food and specialty spirits, and pharmaceuticals. PE suitors like Bain Capital had also submitted a non-binding offer but it was not accepted due to significant valuation differences.

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Incidentally, Brookfield had made a formal bid during the last sale process, but talks between the two fell through at an advanced stage, only to revive a few months back. For Blackstone, according to sources, monetizing this investment – from its first Asia fund – has become crucial before it could start deploying from its third fund. Blackstone Capital Partners (BCP) Asia III closed at a record $13.1 billion in June 2026, marking Blackstone’s largest-ever private equity fundraise for the Asia-Pacific. In the interim, they also explored multiple options such as a continuation vehicle for PGP, but those efforts did not fructify.

Blackstone and Brookfield declined to comment.

Multiple Attempts

In the past, Blackstone sought a $2 billion valuation for the business, which most believe is now difficult, considering the flux in energy prices. Industry observers said rising energy prices on the back of the ongoing Iran-US war in the Middle East, have impacted its business. Oil prices rose more than 8% week-on-week as attacks on tankers and energy facilities in the Middle East raised concerns over extended supply disruptions. International benchmark Brent crude futures for November delivery traded at $104.09 per barrel on Friday, up 8.1% from last Friday’s close of $96.28. Sources close to Blackstone, however, insisted that despite the war business has been resilient with profits for FY26 up 20%.

The company founded as Gujarat Gas Ltd. was renamed Piramal Glass in 2008 after Piramal Group acquired it. It was delisted from Indian exchanges in 2014.

PGP Glass has operations in India and Sri Lanka with an overall capacity of 1,720 tonnes per day, 12 furnaces and 70 production lines. It has offices and warehousing facilities in France, Germany, Turkey, Spain, Brazil, India, the UAE, UK, and Sri Lanka. PGP Glass serves customers in over 50 countries around the world, according to the company website. About 77% of its sales come from high end cosmetics and specialty spirits.

In fiscal 2025, the company’s consolidated total income grew by 4.4% year-over-year to Rs 4,278 crore, while its EBITDA reached Rs 1,430.2 crore -- a 5.1% increase from the previous year. According to the company’s management, the EBITDA margin was sustained at 33% plus level supported by various operational and manufacturing excellence initiatives. The net profit for the year was Rs 384.2 crore.

Diversified Play

Perfumery (C&P) division remained a cornerstone of the business, the company said in its FY25 annual report contributing 37.5% of total revenue. The pharmaceutical segment retained its market leadership, particularly in India. Additionally, the specialty, food & beverages segment was the best-performing division, growing by 6.5% year-on-year and contributing 41% of total revenue, growth was led by a significant surge in food packaging. Even though the specialty liquor category remained sluggish, it was the largest contributor within the segment.

“Brookfield is best suited for a business as large and complex as PGP. It has extensive experience in packaging sector and thrives on business turnarounds,” said an India investment banking head of a leading European financial group on condition of anonymity as the talks are in private domain.

Its private equity has deep experience backing industrials and manufacturing companies. In December 2025, it acquired Fosber, an Italy-based maker of high-speed corrugating machinery and technology for the corrugated packaging industry, in a carve-out deal from Guangdong Dongfang Precision valued at approximately $900 million. Previous industrial investments include Chemelex, a global leader in electric heat tracing systems, Clarios, the global leader in advanced low-voltage batteries, and GrafTech, a global manufacturer of graphite electrodes. Between 2018-2025, it also acquired a 75% controlling interest in returnable plastic packaging manufacturer Schoeller Allibert. Then in 2025, Brookfield and Schoeller Allibert agreed to merge with rigid-plastic packaging producer IPL, creating an international sustainable packaging business with revenue exceeding $1.4 billion. In India too, it invested Rs 2000 crore in the carved out packaging films division (JPFL Films Pvt Ltd) of India's Jindal Poly Films for roughly Rs 2,000 crore.