Private equity firm Blackstone entered into a definitive agreement with Ashok Goel Trust to purchase a majority stake in Essel Propack (EPL), a leading global specialty packaging company and the largest global manufacturer of laminated tubes.
Ashok Goel Trust and its affiliates currently hold about 57% of EPL. Blackstone will pay a purchase price of Rs 134 per share to acquire a 51% shareholding from Ashok Goel Trust. As per the Takeover Code in India, this transaction will trigger a mandatory open offer for a purchase of additional 26% shares of the company and the acquiring entity has released a public announcement to the stock exchanges.
The open offer price has been fixed at Rs 139.19 per share. Based on the open offer subscription, the purchase price consideration will vary between Rs 2,157 crore and Rs 3,211 crore (or, approximately US$ 310 million to US$ 462 million). Ashok Goel will retain a minority stake in the company. The sale is expected to complete in the coming months, subject to customary closing conditions and approvals.
Amit Dixit, senior managing director and head of private equity in India at Blackstone, said, “We are excited to partner with the management team and support EPL’s customers with continued investments. EPL has decade-long relationships with marquee global customers and a track record of product innovation. 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.”
Founded in 1982, EPL is a global leader in laminated tubes. Through its 20 state-of-the-art facilities across 10 countries, employing over 3,158 people, EPL manufactures 7 billion tubes annually. EPL’s clientele includes marquee global brands in the oral care, beauty, cosmetics and pharmaceutical industries.
Ashok Goel, chairman and managing director EPL, 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. I see Blackstone as a partner with the same values, culture and ethos. The company’s management team is excited to welcome Blackstone.”