- EPL Ltd and Indovida India Pvt signed definitive merger agreements subject to approvals
- The merger creates a $2 billion platform combining packaging portfolios and capabilities
- EPL valued at $1.2 billion and Indovida at $0.7 billion in the merged entity
EPL Ltd., a global leader in flexible packaging solutions backed by Blackstone, and Indovida India Pvt. signed definitive agreements on Sunday for a merger. The merger has been approved by the board of directors of the respective companies and is subject to regulatory and shareholders' approvals.
The merger will establish a stronger platform by combining the packaging portfolio and capabilities, expanding global access and enhancing the addressable market size, growth potential and financial metrics, the company said in a release.
The combined platform will have a valuation of $2 billion, with EPL being valued at $1.2 billion, 70% higher than its Friday's closing price, and Indovida being valued at $0.7 billion, it added. "This marks a pivotal step in EPL's evolution from a single‑format flexible packaging leader to a scaled, multi‑format packaging platform, purpose‑built to serve global and regional customers across high‑growth emerging markets."
Based on the valuation analysis and the swap ratio recommended by the independent valuers, Indorama Ventures will emerge as a promoter of the merged entity, holding 51.8% stake in the merged entity. EPL will own a 16.6% stake in the merged entity.
As per the merger deal, Bakshi will remain the Group CEO and will lead the merged entity. Sunil Marwah, CEO of Indovida, will continue to lead the Indovida business and report to Bakshi.
"The transaction aligns with Indorama Ventures' long‑term strategy to expand and deepen its presence in India, leveraging the country's structural growth opportunity through an expanded and integrated packaging platform with public markets access," the release said.
It is consistent with Indorama Ventures' broader strategy under its IVL 2.0 program of building leading positions in key markets through focused partnerships, and value-accretive investments, it added.
(With PTI inputs)
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