EPL Ltd, a global leader in flexible packaging backed by Blackstone, and Indovida India Pvt Ltd, a rigid PET packaging platform backed by Indorama Ventures, have signed definitive agreements for a merger that will create a $1 billion revenue entity with a combined valuation of $2 billion.
The proposed transaction marks a significant consolidation in the packaging sector, bringing together complementary capabilities across flexible and rigid formats.
Strategic transformation
The merger will enable the combined entity to expand its product portfolio, enhance global market access and strengthen growth prospects across high-potential emerging markets.
It represents a pivotal shift for EPL from a single-format flexible packaging company to a diversified, multi-format packaging platform.
Ownership and structure
Based on the agreed swap ratio, Indorama Ventures will emerge as a co-promoter with a 51.8% stake, while Blackstone will hold 16.6% in the merged entity.
The transaction will be implemented through a scheme of amalgamation, under which Indovida will merge into EPL, which will continue as the listed entity.
Strategic rationale
The merger is driven by scale, synergies, enhanced market reach and improved financial metrics, including margin accretion.
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 integrated packaging platform with public markets access.
It is also consistent with Indorama Ventures’ broader IVL 2.0 strategy of building leadership positions in key markets through focused partnerships and value-accretive investments.
Leadership continuity
Hemant Bakshi will continue as Group CEO of EPL and lead the combined entity.
Indovida CEO Sunil Marwah will continue to head the Indovida business and report to Bakshi.
Management commentary
“This merger represents a defining moment in EPL’s journey. It transforms EPL into a broader multi-format packaging platform with a strong presence in high-growth emerging markets, focused on innovation for large and emerging brands,” EPL Ltd, Managing Director and Group Chief Executive Officer, Hemant Bakshi, said.
“With our combined scale, supply chain resilience and sustainability capabilities, the merged entity is well positioned to deliver long-term value to customers and shareholders,” Indorama Ventures, Aloke Lohia, said.
“This merger creates a leading emerging markets platform with a strong competitive position and significant growth potential, both organic and inorganic,” Blackstone, Managing Director and EPL Director, Animesh Agrawal, said.
Timeline
The transaction is subject to shareholder, regulatory and court approvals and is expected to be completed over the next 12 months.