Blackstone Group has announced that it has struck a deal to acquire a majority stake in Indian laminated tubes manufacturer Essel Propack Ltd (EPL).
The New York-based private equity fund is set to purchase an initial 51 percent share from Ashok Goel Trust at INR134 per share, which will then trigger an open offer for the purchase of an extra 26 percent stake under Indian law. The open offer price has been fixed at INR139.19 per share, meaning Blackstone could pay up to US$462 million.
“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,” said Amit Dixit, Senior Managing Director of Private Equity, Blackstone India. “EPL is a leader in emerging markets and well-positioned to benefit from consumption growth across categories.”