Private equity firm Blackstone has agreed to acquire a 51% stake in India-based rigid plastic packaging provider Essel Propack (EPL)
Under the terms of the deal, private equity funds managed by Blackstone will acquire the majority interest in EPL from Ashok Goel Trust for a purchase price of INR134 per share.
Currently, Ashok Goel Trust and its affiliates hold approximately 57% stake in global specialty packaging company.
The deal, as per the Takeover Code in India, triggered a mandatory open offer whereby Blackstone, along with Epsilon BidCo, offer to acquire an additional 26% stake in Essel for INR11.42bn ($163.92m).
Depending on the offer, the value of the deal will range from $310m to $462m. Ashok Goel Trust will retain a 6% stake in EPL.
Blackstone senior managing director and private equity head in India Amit Dixit said: “Leveraging the ongoing industry shift to laminated tubes and EPL’s leadership position in oral care, our plan is to accelerate growth in fast-growing end categories such beauty, cosmetics and pharmaceuticals.
“EPL is a leader in emerging markets and well-positioned to benefit from consumption growth across categories. This investment follows Blackstone’s long-standing belief and track record in the B2B2C sector.”
Subject to customary closing conditions and approvals, the transaction is planned to be completed in the coming months.
EPL chairman and managing director Ashok Goel said: “As we embark on the next trajectory of growth at EPL, Blackstone brings deep expertise in packaging space globally with senior team of highly experienced professionals with a proven track record of creating value.”
EPL manufactures and provides laminated tubes through its 20 facilities located across 10 countries. It serves clientele including major brands in the oral care, beauty, cosmetics and pharmaceutical industries.
On the transaction, Morgan Stanley acted as the exclusive financial advisor to the sellers and its affiliates while PWC, Khaitan & Co and Baker McKenzie acted as advisors to sellers and its affiliates.
KPMG, Trilegal and Simpson Thacher & Bartlett served as advisors to Blackstone.