EPL to merge with Indovida, creating $2 billion packaging platform

The merger will create a $2-billion packaging platform combining flexible and rigid capabilities, with a strong focus on emerging markets and global expansion

EPL Limited, a global leader in flexible packaging, on Sunday announced that it has signed definitive agreements with Indovida India Private Limited for a merger.

 

While EPL is backed by Blackstone, Indovida, a leading global rigid PET packaging platform, is backed by Indorama Ventures.

 

"The combined platform will have a valuation of $2 billion, with EPL being valued at $1.2 billion (70 per cent higher than its Friday’s closing price) and Indovida being valued at $0.7 billion," stated a release by the company.

 

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 release further stated.

 

 

"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," it added.

 

The merged entity will be one of the leading emerging market-focused packaging companies with $1 billion of revenue, and will leverage EPL and Indovida’s industry-leading positions in emerging markets. At least 75 per cent of the merged company’s revenue is from emerging markets. A complementary geographical presence will drive higher growth.

 

"This merger represents a defining moment in EPL’s journey and helps transform EPL into a broader multi-format packaging platform with unmatched presence in high-growth emerging markets, focused on innovation for large and emerging brands," said Hemant Bakshi, managing director and global chief executive officer, EPL, in the release.

 

"Indovida has been built as a customer-centric, operationally strong packaging platform. Our initial minority investment in EPL was reflective of our belief that it is an extremely attractive business with great future potential, globally as well as in India. Combining Indovida with EPL is the logical next step, and enables us to extend that foundation across formats and markets. With our combined scale, supply chain resilience and sustainability capabilities, the merged entity is well positioned to deliver long-term value to customers and shareholders alike," said Aloke Lohia, group chief executive, Indorama Ventures.

 

"The merger also meaningfully advances Indorama Ventures’ strategic objective of deepening its presence in India, strengthening our downstream packaging footprint and reinforcing India as a key growth market within our global portfolio," he added.