Bilcare, an Indian pharmaceutical product packaging company has announced its plans of buying the plastic film-making unit of petrochemical company 'INEOS', for approximately $131m.
Bilcare will have a deeper access to the European and US customers following this acquisition.
Besides, Bilcare will have an annual revenue of around $541m , with the Indian business growing between 25% and 30% a year.
Bilcare chairman Mr, Bhandari said this is an all cash deal that will be one-third funded by the company’s internal accruals and the rest will be raised in the form of bank loans. There was no merchant banker involved in the deal.
Bilcare vice president, finance, Vineet Mehrotra said that the buy will boost business, especially research-driven packaging solution and provide customised solutions to sensitive and stable drugs which will increase revenues substantially.
Under the deal, Bilcare’s German subsidiary will buy INEOS’ film-making business globally.
INEOS Films chief executive Iain Hogansaid said that INEOS Films business is no longer core to the INEOS Group as the company focuses its attention on its large-scale petrochemicals businesses.