Blackstone to sell 24.9% stake in EPL to Indorama for $220 mn

Blackstone will sell a 24.9% stake in specialty packaging maker EPL to Indorama Netherlands, a subsidiary of Thailand-based Indorama Ventures Public Co. Ltd (IVL), for about Rs1,907 crore ($220 million).

The deal is valued at Rs240 per share and is expected to close in the coming months, Blackstone said in a statement. The transaction is part of Blackstone’s strategy to reduce its stake in EPL, which operates 21 manufacturing facilities in 11 countries and has more than 3,500 employees.

Blackstone bought a majority stake in EPL in 2019, purchasing over 75% of the company from Ashok Goel Trust for up to $460 million. In September 2020, it sold 23% of its stake for $252 million. After the latest sale, Blackstone’s ownership in EPL will drop to about 26.5%.

“We are pleased to continue to support EPL in its growth journey. Over the last few years, in conjunction with the management team led by CEO Anand Kripalu, we have helped build the business into one of the fastest growing packaging companies worldwide. EPL is now a global leader in sustainable packaging, supplying to some of the leading brands across sectors. We are excited to welcome IVL as an investor in EPL,” Amit Dixit, head of Asia Private Equity at Blackstone, said.

As part of the agreement, Indorama Ventures will have the right to appoint one nominee director to EPL’s board.

Morgan Stanley served as the exclusive financial advisor to Blackstone, with Trilegal and Simpson Thacher providing legal counsel. Goldman Sachs advised IVL, with Khaitan & Co and Chandhiok & Mahajan acting as legal advisors.