EPL, a provider of flexible packaging solutions backed by Blackstone, and Indovida, a rigid PET packaging platforms backed by Indorama Ventures, have signed definitive agreements for a merger.
The merger has been approved by the Board of Directors of the respective companies and is subject to regulatory and shareholders’ approvals.
The merger will establish a stronger platform by combining the packaging portfolio and capabilities, expanding global access, and enhancing the addressable market size, growth potential and financial metrics.
The combined platform will have a valuation of ~$2 billion, with EPL being valued at ~$1.2 billion (70% higher than its Friday’s closing price) and Indovida being valued at ~$0.7 billion.
This marks a pivotal step in EPL’s evolution from a single-format flexible packaging leader to a scaled, multi-format packaging platform, purpose-built to serve global and regional customers across high-growth emerging markets.
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 expanded and integrated packaging platform with public markets access. It is consistent with Indorama Ventures’ broader strategy under its IVL 2.0 program of building leading positions in key markets through focused partnerships, and value-accretive investments.
Strategic Rationale for the Merger
- Scale: Merged entity will be one of the leading emerging markets focused packaging companies with ~$1 billion of revenue.
- Growth Potential: The merged entity will leverage EPL and Indovida’s industry leading positions in emerging markets (~75% of MergeCo revenue is from emerging markets) and complementary geographical presence to drive higher growth.
- Synergies: The merger is expected to result in sizable synergies driven by complementary geographic footprint and products, procurement & supply chain efficiency, and strong sustainability initiatives of both the companies.
- Attractive Valuation: The transaction values EPL at INR 339 per share, 70% higher than Friday’s closing price; Indovida is valued at a ~35% discount to the multiple ascribed to EPL. This attractive valuation will drive long-term value creation for all Shareholders and is EPS accretive from Day 1.
- Margin Accretive: Strong financial metrics with 2025 EBIT margin expanding from 12.4% for EPL to 13.6% for the merged entity. Similarly, the transaction would be RoCE accretive with 2025 RoCE expected to increase from 18.7% for EPL to 20.9% for the merged entity.
- Management Strength: Complementary management team with deep expertise in South Asian, African and Latin American emerging market operations.
Hemant Bakshi, Managing Director & Global CEO, EPL, said: “This merger represents a defining moment in EPL’s journey. This merger helps transform EPL into a broader multi-format packaging platform with unmatched presence in high-growth emerging markets; focused on innovation for large and emerging brands. The combined capabilities, customer relationships and global footprint position us to become the partner of choice for customers and drive growth across categories and markets. I am excited to welcome the Indovida team to the EPL family and look forward to building an exciting future together.”
