Bengaluru: Indorama Ventures Europe (IVE) will acquire a minority stake of about 24.9% in EPL Limited, a global specialty packaging company and manufacturer of laminated tubes, from private equity firm Blackstone for $200 million.
The sale, which is expected to be completed in the coming months, is pegged at ₹240 a share and is subject to customary closing conditions and approvals. Once the transaction is completed, Indorama will be entitled to appoint a nominee director to the board of EPL, it said in a statement.
Anand Kripalu, managing director and chief executive of EPL said, “This partnership has resulted in meaningful growth by increasing presence in emerging markets, focusing on sustainable tubes, and increasing our market share in the fast-growing beauty, cosmetics and pharmaceutical industries.”
Morgan Stanley was the exclusive financial advisor to Blackstone while Trilegal and Simpson Thacher were its legal advisors. Goldman Sachs was the exclusive financial advisor to IVE, and Khaitan & Co and Chandhiok & Mahajan were its legal advisors.
Blackstone’s 2019 buy
In 2019 Blackstone acquired 75% of EPL for $470 million ( ₹134 a share) from erstwhile promoter Essel Group and public shareholders. A few months later the investment firm sold a 8.7% stake in Embassy REIT for around $300 million. This was followed by another large sale of shares – representing almost a quarter of the total shareholding – to various institutional investors through block trades in September 2020.
The buyers included institutional investors such as Axis Mutual Fund, IDFC Mutual Fund, Aditya Birla Sun Life Mutual Fund, Nomura, Franklin Templeton Mutual Fund, DSP Mutual Fund, Government Pension Fund Global and Neuberger Berman. Blackstone sold 72.58 million shares at ₹256.5 each for a total of $252 million.
Founded in 1982, EPL has about 21 facilities in 11 countries and more than 3,500 employees, and produces more than eight billion tubes a year. Its clients include brands in the oral care, beauty, cosmetics and pharmaceutical industries.
Revenue from operations for the nine months to 31 December 2024 was ₹4,137 crore and Ebitda was ₹806 crore, reflecting about 17% year-on-year growth. EPL aims to increase its presence in emerging markets and ramp up its focus in the fast-growing beauty, cosmetics and pharmaceutical segments.
Indorama Ventures has a global manufacturing footprint across Europe, Africa, the Americas and Asia Pacific. The company’s portfolio comprises combined PET, fibers, Indovinya and Indovida. Its products serve the FMCG, agricultural, lifestyle and automotive sectors in the beverages, hygiene, personal care, tires, and safety segments. In 2023, the company reported revenue of $15.6 billion.