 "Essel Propack takes over German packaging JV")
Essel Propack, the maker of laminated plastic tubes for the FMCG and pharmaceuticals industries, has announced a complete buyout of its German joint venture Essel Deutschland GmbH (EDG), at an enterprise value of $ 32 million. The company has increased its stake in EDG from present 24.9 percent to 100 percent, making the German firm a wholly-owned subsidiary of Essel Propack.
“Lamitube Technologies (LTL), a wholly owned subsidiary of Essel in Mauritius, will acquire remaining 75.1 percent share in Essel Deutschland Gmbh & Co KG, Germany," said Essel in a press release.
The acquisition will help Essel unlock synergies such as enhanced cross selling opportunity in the German markets, sourcing flexibility and better capacity utilisation at all of its Europe plants.
It will also allow Essel to widely deploy its proven capability to offer high decoration laminated tubes to the premium non-oral care brands across Europe. The EDG revenue of approximately $ 40 million will now be consolidated in Essel's global revenue and will boost consolidated revenue by 11 percent. In FY16, Essel Propack's consolidated revenue stood at Rs 2,184 crore.
Ashok Goel, vice chairman and managing director, Essel Propack, said, "The acquisition of EDG will further enhance our position in the non-oral care category. This move is in keeping with our overall plans for achieving revenue growth of 15 percent and PAT growth of 20 percent and achieving our Mission 20:20:20."
The company has embarked on a mission 20:20:20 - EBITDA margin of 20 percent, return on equity (ROE) at 20 percent and return on capital employed (ROCE) at 20 percent with in next two years.
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