Both Horizon Packs and Securipax Packaging serve the Indian corrugated packaging sector and have a combined total of seven plants across the country
Paper and packaging board company JK Paper has signed an agreement to acquire corrugated packaging firms Horizon Packs and Securipax Packaging in phases for about INR5.78bn ($70.7m).
Both Horizon Packs and Securipax Packaging serve the Indian corrugated packaging sector and have a combined total of seven plants across the country, JK Paper said in the regulatory filing.
Under the deal, the paper firm will buy 269.2 million equity shares in Horizon Packs for INR19.33 per share and 463,000 equity shares for INR1,256.95 apiece in Securipax Packaging, representing an 85% stake in each firm.
JK Paper said it will acquire the remaining 15% within three years as per the respective agreements.
The packaging firm said that the deals are in synergy with the expanding packaging sector and the corrugated packaging arm of its subsidiary. They will also expand the corrugated packaging business in terms of volume and market.
JK Paper vice chairman and managing director Harsh Pati Singhania said: “It is a privilege to join hands with India’s largest player in the Corrugated Packaging segment.
“This together with JK Paper’s upcoming corrugated facility in Ludhiana will establish it as the largest player in the corrugated packaging industry.
“This acquisition gives us an opportunity to benefit from the existing strengths of HPPL and SPPL. HPPL and SPPL’s customers, employees, vendors and partners will benefit from JK Paper’s strong manufacturing knowledge and experience.”
Established in 2021, Horizon Packs has six plants across India and produces corrugated boxes and sheets, and other packaging-related work.
SPPL, founded in 1980, has one manufacturing plant in Roorkee that manufactures corrugated boxes and sheets.
In April 2020, JK Paper awarded a contract to Valmet to supply the complete mill-wide Valmet DNA Distributed Control System (DCS).