New Delhi, Feb. 24 -- Private equity firm Blackstone said Monday it has agreed to sell a minority stake in Indian specialty packaging and laminated tube maker EPL Ltd to a unit of Indorama Ventures Public Company Ltd for Rs 1,907 crore (around $220 million).
Blackstone will sell a 24.9% stake in the publicly listed EPL to Indorama Netherlands BV at Rs 240 per share, the PE firm said in a stock-exchange filing.
Shares of EPL were down 1.66% at Rs 233.85 apiece in early trading in a weak Mumbai market.
Blackstone had acquired a 75% stake in EPL, then known as Essel Propack Ltd, in 2019 for about $460 million. A year later, in September 2020, it sold a 23% stake in the company for about $252 million, churning out high returns on its investment.
After the latest partial exit, Blackstone's stake in EPL will drop to 26.55% from 51.45%.
Indorama Netherlands is a group entity of the Thailand-listed Indorama Ventures, which was founded by Indian-origin businessman Aloke Lohia. Once the deal is completed, the company will be entitled to appoint one nominee director to the board of EPL.
Indorama is one of the world's biggest chemicals producers, with a global manufacturing footprint across Europe, Africa, Americas, and Asia Pacific. Its products serve major FMCG, agricultural, lifestyle, and automotive sectors, including beverages, hygiene, personal care, tire, and safety segments.
Indorama Ventures has about 26,000 employees worldwide and reported revenue of $15.6 billion in 2023. The company is listed on the Dow Jones Emerging Markets and World Sustainability Indices (DJSI).
EPL, founded in 1982, is one of the world's biggest manufacturers of laminated tubes. With 21 facilities across 11 countries and more than 3,500 employees, EPL produces more than eight billion tubes annually.
EPL's clientele includes global brands in the oral care, beauty, cosmetics and pharmaceutical industries. Its last 12 months revenue from operations as of December 31, 2024, was Rs 4,137 crore and EBITDA was Rs 806 crore, registering an about 17% year on year growth.
Blackstone is the world's largest alternative asset manager, with more than $1.1 trillion in assets under management.
"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," said Amit Dixit, head of Asia private equity at Blackstone.
Published by HT Digital Content Services with permission from VC Circle.