Blackstone, one of the world’s leading investment firms, is buying 51 percent from promoters of Essel Propack Limited (EPL) for Rs 1,142 crore.
Essel Propack is a leading global speciality packaging company and the largest global manufacturer of laminated tubes.
Currently, Ashok Goel Trust and its affiliates hold 57 percent of Essel Propack and Blackstone will pay a purchase price of Rs 134 per share to acquire a 51 percent shareholding from the trust.
As per the takeover code, this transaction will trigger a mandatory open offer for a purchase of an additional 26 percent 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 $310 million - $462 million).
Ashok Goel will retain 6 percent stake in the company and will get Rs 16 crore per year for five years as advisor of 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 as beauty, cosmetics and pharmaceuticals. EPL is a leader in emerging markets and well-positioned to benefit from consumption growth across categories."Ashok Goel, chairman and managing director, Essel Propack, said, "It has been a wonderful journey for me leading EPL to a position of global leadership in speciality packaging especially laminated tubes. Today, EPL is a partner for leading global customers across sectors and geographies through a sharp focus on innovation, sustainability and agility. As we embark on the next trajectory of growth at EPL, Blackstone brings deep expertise in packaging space globally with a 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."