EPL Eyes Dominance in EM Consumer Packaging Market Following Indovida Merger

Indorama Ventures Merges EPL Ltd and Indovita India Private Limited

Key Highlights:

• Indorama Ventures has merged EPL Ltd and Indovita India Private Limited, creating a packaging platform valued at around $2 billion.
• The proposed transaction will be implemented through a scheme of amalgamation, with EPL continuing as the listed entity.
• Indorama Ventures will hold a 51.8% stake, while Blackstone will own a 16.6% stake in the combined entity.

Merger Rationale:

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The merger aims to create a leading consumer packaging business in emerging markets, with a focus on scale, new markets, and formats. EPL has delivered double-digit growth in the last three quarters, and the merger is expected to double revenue and bottom line, while increasing valuation to $2 billion.

Benefits of the Merger:

• Increased scale and revenue growth
• Enhanced exposure to emerging markets in Africa and Southeast Asia (75% of total business)
• Margin accretive, with improved EBIT and ROCE
• Attractive valuation, with a 70% premium to EPL's closing price on Friday
• Identified synergies, including revenue and cost-led opportunities

Future Plans:

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The combined entity will continue to pursue acquisitions, with a focus on emerging markets. EPL will maintain its leadership position in India, while aiming to become a leader in emerging markets globally. The business has already established a strong presence in China, Brazil, and the US, and will continue to expand its capabilities and reach.