Blackstone to acquire India's Essel Propack

According to a regulatory filing, Blackstone will initially pay INR21.6 billion for a 51% stake in EPL from its chairman and managing director Ashok Goel, for INR134 per share, a slight premium to the April 22 closing price of INR133. The transaction will trigger a mandatory open offer for an additional 26% holding that has been fixed at INR139.19 per share. Goel, who currently holds 57% of the company, will retain a minority stake but will step down from his executive role and from EPL’s board.

EPL was founded in 1982 and specializes in the production of laminated tubes used to hold a variety of liquids and gels. Its products are used by marquee global brands in the cosmetics, oral care, and pharmaceutical sectors, with factories in India, China, the Philippines, Egypt, Poland, Germany, Russia, the US, Mexico, and Colombia.

For the year ended March 2018, the company reported revenue of INR24.7 billion, up from INR24.2 billion the year before. Over the same period, net profit contracted from INR1.95 billion to INR1.74 billion.

“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 as beauty, cosmetics, and pharmaceuticals,” said Amit Dixit, a senior managing partner and head of India private equity at Blackstone. “EPL is a leader in emerging markets and well-positioned to benefit from consumption growth across categories.”

Blackstone is investing in EPL from its debut Asia-focused PE fund, which closed last year at $2.3 billion, along with its global buyout program. Recent India buyout activity by the firm includes the purchase of affordable housing lender Aadhar Housing Finance in February for around INR30 billion.

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• Topics
• South Asia
• Buyouts
• Industrials
• India
• The Blackstone Group
• manufacturing