Chemical producer Indorama Ventures is acquiring a 24.9 percent minority stake in speciality packaging company EPL Ltd from American private equity firm Blackstone for Rs 19.10 billion. The transaction is valued at Rs 240 per share and is expected to be completed in the coming months, pending regulatory approvals.

Since the acquired stake remains below 25 per cent, no open offer is required. Blackstone’s private equity funds had taken control of EPL, formerly known as Essel Propack, in 2019 and continue to hold a significant share in the company. The transaction will enable Indorama Netherlands BV, a subsidiary of Indorama Ventures, to establish a presence in EPL, the world's largest manufacturer of laminated tubes.

EPL operates 21 production facilities across 11 countries, supplying global brands in the oral care, cosmetics, and pharmaceutical industries. The company reported revenue of Rs 41.37 billion for the 12 months ending December 31, 2024, with earnings before interest, taxes, depreciation, and amortisation (EBITDA) of Rs 8.06 billion, reflecting a 17 per cent year-on-year increase. It has focused on expanding in emerging markets and strengthening its presence in high-growth segments such as beauty and pharmaceuticals.

Following the transaction, Indorama Ventures will gain the right to nominate a director to EPL’s board. Financial advisory for the deal was provided by Morgan Stanley for Blackstone and Goldman Sachs for Indorama Ventures. Legal counsel was handled by Trilegal and Simpson Thacher for Blackstone, while Khaitan & Co and Chandhiok & Mahajan advised Indorama Ventures.

News source: Business Standard

Image Source: Money Control