PE-backed Max India sells polypropylene film unit for $97m
Max India, which is backed by Goldman Sachs, International Financial Corporation (IFC) and Temasek Holdings, has sold its biaxially oriented polypropylene (BOPP) film division to Germany's Treofan for INR5.4 billion ($97 million). The divestment allows the Indian company to focus on its core healthcare and insurance businesses.
Max India has sold various units over the years, but the polypropylene film division is one of its oldest businesses.
"It was always a tough decision for us to divest the oldest business in our portfolio," said Analjit Singh, chairman of Max India, in a press release. "It was an emotional decision for me personally, but the board and management rightly decided that it made good business sense to focus on our portfolio of service oriented businesses of life."
In May 2009, IFC invested $30 million in the conglomerate for a 4% stake. Seven months later, Goldman Sachs joined the club by committing $115 million. Last December, the US invesment bank offered another $59 million to pick up 6.48% in the company from Warburg Pincus, an investor in Max India since 2004.
In 2010, Temasek also acquired a 3% stake in the company for $26 million through the open market.
Max Speciality Films - the selling unit - produces about 52,000 tons of BOPP film annually. Its products are used in the packaging, label and textile industries.
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