Blackstone has agreed to sell a 24.9% stake in EPL, an Indian speciality packaging manufacturer, to Indorama Netherlands, for approximately Rs19.07bn ($220m).
This move comes as part of the global asset manager’s strategy to offload its shares in the company.
The transaction will see Indorama Netherlands, a subsidiary of Thailand-based Indorama Ventures (IVL), purchasing the stake at Rs240 per share.
This marks a significant divestment by Blackstone, which first acquired a controlling interest in EPL in 2019.
At that time, Blackstone purchased over a 75% stake in the company from Ashok Goel Trust for up to $460m.
In a subsequent transaction in September 2020, Blackstone sold a 23% stake for $252m. Following the latest sale, Blackstone’s holding in EPL will be reduced to approximately 26.5%.
EPL, established in 1982, is a key player in the packaging sector, serving the fast-moving consumer goods (FMCG) and pharmaceutical industries.
With 21 manufacturing facilities, the company boasts a global clientele that includes prominent brands in oral care, beauty, cosmetics, and pharmaceuticals.
Upon completion of the deal, Indorama Ventures will gain the right to appoint one nominee director to the board of EPL, further solidifying its influence within the company.
Blackstone Asia Private Equity head Amit Dixit said: “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.”
