Indorama Ventures to buy minority stake of 25% in EPL from Blackstone

Chemical producer Indorama Ventures is set to acquire a minority stake of approximately 24.9 per cent in speciality packaging company EPL Ltd from American private equity major Blackstone for Rs 1,910 crore ($221 million), according to a press statement.

 

The deal, priced at Rs 240 per share, is expected to close in the coming months, subject to regulatory approvals.

 

No open offer will be initiated as the stake remains below 25 per cent as of now.

 

Blackstone’s private equity funds had taken control of EPL (formerly Essel Propack) in 2019, and remains a significant shareholder.

 

The transaction will see Indorama Netherlands BV, a subsidiary of Indorama Ventures, gain a foothold in EPL, which is the world’s largest manufacturer of laminated tubes.

 

 

“EPL is known for its innovative, high-quality packaging products across the globe and resonates with Indorama’s philosophy of investing in attractive businesses with great future potential, globally, as well as in India,” said Aloke Lohia, founder and group CEO, Indorama Ventures.

 

EPL operates 21 production facilities across 11 countries, catering to global brands in the oral care, cosmetics, and pharmaceutical industries.

 

EPL reported revenue of Rs 4,137 crore for the 12 months ending December 31, 2024, with earnings before interest, taxes, depreciation, and amortisation (Ebitda) of Rs 806 crore, reflecting 17 per cent year-on-year growth.

 

The company has focused on expanding in emerging markets and strengthening its position in high-growth sectors such as beauty and pharmaceuticals.

 

“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. EPL is now a global leader in sustainable packaging, supplying to some of the leading brands across sectors. We are excited to welcome IVL as an investor in EPL,” said Amit Dixit, head of Asia Private Equity, Blackstone.

 

Following the transaction, Indorama Ventures will have the right to nominate a director to EPL’s board.

 

Financial advisors on the deal included Morgan Stanley for Blackstone and Goldman Sachs for Indorama Ventures. Legal counsel was provided by Trilegal and Simpson Thacher for Blackstone, while Khaitan & Co and Chandhiok & Mahajan advised Indorama Ventures.