Indorama Ventures to buy minority stake in EPL Ltd from Blackstone for Rs 240/share

Indorama will acquire 24.9 percent from the Blackstone-backed firm for Rs 240 per share, according to the statement

Indorama, a global packaging firm, is set to acquire a minority stake in EPL Ltd from Blackstone, a company statement said on February 24.

The statement said that Blackstone has entered into a definitive agreement with Indorama Netherlands to sell a minority stake in EPL, which is a leading global specialty packaging company and the largest global manufacturer of laminated tubes.

EPL Ltd's stock plunged close to 7 percent on NSE to trade at Rs 221.6 at 2:20 pm on February 24.

On Oct 30, Moneycontrol was the first to report that Blackstone was evaluating a strategic review of portfolio company EPL Ltd, the worlds largest speciality packaging firm.

Anand Kripalu, Managing Director and Chief Executive Officer of EPL, said, “We look forward to having IVL, with global presence and expertise, as an investor in EPL.”

Indorama will acquire 24.9 percent from the Blackstone-backed firm for Rs 240 per share, according to the statement. The company said the sale is expected to be sealed in the next few months subject to regulatory clearances.

Amit Dixit, head of Asia Private Equity, Blackstone, said: “We are pleased to continue to support EPL in its growth journey. Over the last few years, in conjunction with the management team led by CEO Anand Kripalu, we have helped build the business into one of the fastest growing packaging companies worldwide. EPL is now a global leader in sustainable packaging, supplying to some of leading brands across sectors. We are excited to welcome IVL as an investor in EPL.”

Morgan Stanley was the exclusive financial advisor to Blackstone while Trilegal and Simpson Thacher were the legal advisors to Blackstone. Goldman Sachs acted as the exclusive financial advisor to IVL while Khaitan & Co and Chandhiok & Mahajan acted as legal advisors to IVL.

Aloke Lohia, Founder and Group CEO of Indorama Ventures, said: “EPL is known for its innovative, high-quality packaging products across the globe and resonates with Indorama’s philosophy of investing in attractive businesses with great future potential, globally as well as in India.”

EPL, founded in 1982, is a global leader in laminated tubes. With 21 state-of-the-art facilities across 11 countries and a workforce of more than 3,500 employees, EPL produces more than eight billion tubes annually. EPL's clientele includes marquee global brands in the oral care, beauty, cosmetics and pharmaceutical industries.