en.Wedoany.com Report on Mar 30th, EPL, a composite plastic tube packaging company backed by Blackstone, recently announced that it will merge with Indovida India, the rigid PET packaging platform under Indorama Ventures, in a deal with a total valuation of approximately $2 billion. The merger aims to create a diversified, multi-format packaging platform. This move is seen as a strategic transformation for EPL, expanding from flexible packaging to a broader range of flexible and rigid solutions.
According to the announcement, EPL is valued at approximately $1.2 billion, representing a premium of about 70% over its closing price last Friday, while Indovida India is valued at around $700 million. Post-merger, Indorama Ventures will become the promoter, holding a 51.8% stake. EPL will continue to operate as a publicly listed company, and Indovida India will be merged into it through a scheme of amalgamation.
Indorama Ventures is a Thailand-listed producer of sustainable petrochemical products, with operations spanning Europe, Africa, the Americas, and the Asia-Pacific region, achieving revenues of $13.6 billion in 2025. Last Friday, EPL shares closed at ₹198 per share on the Bombay Stock Exchange, giving it a market capitalization of ₹63.66 billion. Last year, Indorama Ventures acquired a 24.9% stake in EPL from Blackstone at ₹240 per share.
The combined entity is expected to generate annual revenues of approximately $1 billion, with nearly 75% coming from high-growth emerging markets in Asia, Africa, and South America. The company forecasts that its EBIT margin will expand to 13.6% in 2025, up from 12.4% for EPL on a standalone basis. The valuation framework indicates that EPL received a premium multiple, while Indovida India was valued at a discount of about 35%. The company stated that this structure supports long-term shareholder value creation and expects earnings per share to be accretive from day one.
Hemant Bakshi, Managing Director and Global CEO of EPL, stated: "This merger helps transform EPL into a broader multi-format packaging platform with an unparalleled presence in high-growth emerging markets, focusing on innovation for both large and emerging brands." This transaction marks a trend of consolidation in the packaging industry and is expected to enhance market competitiveness.
