Indorama Ventures Public Company Limited (SET: IVL) has announced that the Company, through its indirect subsidiary, Indorama Netherlands B.V. (INBV), has entered into an agreement with Epsilon BidCo PTE. Limited (a Blackstone Group entity) on 24 February, 2025 to purchase a 24.9% equity stake in EPL Limited (EPL), a public company listed on the BSE Limited and National Stock Exchange of India Limited.
EPL is a leading global manufacturer of PE packaging solutions with significant potential for growth in emerging markets. EPL also offers an attractive entry point into India’s investment landscape, with the packaging companies achieving higher market multiples than global peers.
EPL has growing revenues, compatible industry expertise, and a global footprint in PE laminates and laminated tubes used in the oral, beauty, and pharmaceutical industries. With EPL’s operations spanning 11 countries and a strong foothold in high-growth markets such as India, Mexico, Colombia, Brazil, and the Philippines, this investment offers high returns on capital employed. EPL generates high free cashflows, has very low leverage and consistent dividend pay-out to shareholders. As part of EPL’s commitment to sustainability and the circular economy, the company aims for 60% of its tubes to be recyclable by 2028.
The company has a highly experienced management team which operates the business. The governance by experienced individuals from diverse backgrounds constitute the Board of Directors and the Board sub-committees.
The investment in EPL aligns with Indorama Ventures’ IVL 2.0 roadmap to tap opportunities and enhance value.
The total value of consideration for the purchase of 24.9% equity stake in EPL Limited is approximately INR 19,079 Mn (equivalent to approximately Thai Baht 7,440 Mn)¹. The amount will be paid in cash, and the transaction will be financed through internal cash flow. The closing of the transaction is subject to regulatory approvals.
Goldman Sachs acted as the exclusive financial advisor and Khaitan & Co and Chandhiok & Mahajan acted as legal advisors to the Company.
Meanwhile, Anand Kripalu, Managing Director and Chief Executive Officer of EPL, said: “We are grateful for Blackstone’s support over the years and look forward to their continuing contribution in our journey. This partnership has resulted in meaningful growth by increasing presence in emerging markets, focusing on sustainable tubes, and increasing our market share in the fast-growing beauty, cosmetics, and pharmaceutical industries. We look forward to having IVL, with global presence and expertise, as an investor in EPL.”
