Blackstone-Backed EPL to Merge with Indorama Ventures-Backed Indovida

EPL Limited and Indovida India Private Limited Announce Merger

Global Leaders in Flexible and Rigid PET Packaging Solutions Combine Forces

EPL Limited ("EPL"), a global leader in flexible packaging solutions backed by Blackstone, and Indovida India Private Limited ("Indovida"), a leading global rigid PET packaging platform backed by Indorama Ventures, have signed definitive agreements for a merger. The merger has been approved by the Board of Directors of both companies and is subject to regulatory and shareholders' approvals.

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 combined platform will have a valuation of approximately $2 billion, with EPL being valued at approximately $1.2 billion (70% higher than its Friday's closing price) and Indovida being valued at approximately $0.7 billion.

Read also: Oshea Herbals Aims for Rs 650 Crore Revenue Amidst Expansion Efforts

The transaction 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. The transaction aligns with Indorama Ventures' long-term strategy to expand and deepen its presence in India, leveraging the country's structural growth opportunity through an expanded and integrated packaging platform with public markets access.

Indorama Ventures will emerge as a promoter of the merged entity, holding a 51.8% stake in the merged entity. The proposed transaction will be implemented through a scheme of amalgamation, pursuant to which Indovida will merge with EPL, and EPL will continue as the listed entity. The transaction is subject to customary shareholder, regulatory, and court approvals.

The transaction is expected to close in the next 12 months. Goldman Sachs is acting as financial advisor to the transaction, while Trilegal, Khaitan & Co., and Chandhiok & Mahajan are acting as legal counsel to EPL and Indovida, respectively. BDO and Duff & Phelps have provided a joint valuation report, and EY has provided a fairness opinion on the swap ratio.