Mumbai: The US based private equity major Blackstone will sell about 23% stake in Essel Propack, the leading speciality packaging company, in a deal worth $ 250 million (Rs 1830 crore), said two people aware of the development.
On Friday, Blackstone will sell Essel Propack shares at a price of Rs 255. On Thursday, Essel Propack shares closed at Rs 273 on the BSE.
The part exit from the listed entity will give a return of 2X to Blackstone, said sources. Post transaction, the PE firm will continue to hold 52% stake in Essel.
Blackstone spokesperson could not reached immediately for the comment.
In August last year, Blackstone had acquired about 72% stake in the firm in a deal worth $ 460 million (Rs 3,200 crore).
Essel Propack is world’s largest manufacturer of laminated tubes.
Blackstone had paid Rs 134 per share to acquire a 51% shareholding from Ashok Goel Trust, the founder-promoters of the company. Goel had retained 6% stake. Later, the PE fund acquired additional stake through an open offer.
Established in 1982, Essel Propack is run by Ashok Goel, brother of Subhash Chandra of the Essel Group. Its 20 facilities in 10 countries employ more than 3,100 people and it manufactures 7 billion tubes annually. Clients include marquee global brands in the oral care, beauty, cosmetics and pharmaceutical industries such as Olay, Lacura, Emami, Garnier and L’Oreal.
With $ 512 billion in assets under management, Blackstone has a strong presence in India. The fund has deployed about $ 10 billion through private equity and real estate investments, including Mphasis, Intelenet, IBS Software and Aadhar Housing Finance Limited.
The packaging sector in India remains a significant investment area for global PE funds. In 2018, Advent International had acquired a majority stake in Manjushree Technopack, India’s largest rigid plastic packaging solution provider, valuing the company at Rs 2,300 crore.
