EPL Ltd Board Approves To Acquire Creative Stylo Packs; To Pick 72.5% Stake

: The board of EPL Limited, formerly

Essel Propack Ltd, has approved the acquisition of Creative Stylo Packs Ltd in a part-cash and part-stock transaction.

Creative Stylo Packs is an established manufacturer of corrugated boxes, laminated tubes, plastic co-ex tubes and caps-primarily serving personal care, cosmetic, pharmaceuticals and fast-moving consumer goods in the country, a company statement said on Friday.

"The transaction entails purchase of 72.5 per cent stake (about Rs 157.9 crore) in Creative Stylo Packs through cash. The remaining 27.5 per cent stake will be purchased through issuance of EPL shares to founders of Creative Stylo Pack post the merger," the statement said.

Founders of Creative Stylo Packs Bhavik Shah and Darshan Shan would join the management of EPL after the acquisition, it said.

Following the acquisition, EPL plans to make a stronger play in the beauty and cosmetic categories.

The acquisition would also boost EPL's plastic tube capabilities, which combined with EPL's strong equity in laminate tubes, gives the company a vibrant platform for growth.

The transaction would accelerate revenue and EBITDA (earnings before interest, taxes, depreciation, and amortisation), growth for EPL, it said.

According to a BSE filing, the cost of acquisition of 72. 6 per cent stake in Creative Stylo Packs shall be approximately Rs 1,579 million (Rs 157.9 crore) subject to necessary closing adjustments.

"We believe that our acquisition of Creative will enrich our portfolio enabling us to advance our ambition in personal care. This will also strengthen us further in Africa, Middle-East and South Asia, a key growth region for us," EPL managing director Sudhanshu Vats said.

"I am personally delighted to welcome Bhavik and Darshan to the EPL fold. Their entrepreneurial spirit and youthful energy will help us move forward with greater purpose and agility," he added.

Bhavik Shah said, "We are excited and look forward to work with the EPL team in furthering their cause of being a leading specialty packaging company in the world."

KPMG provided transaction advisory services, the statement added.

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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