EPL and Indovida to Merge, Creating a $1 Billion Consumer Packaging Leader for Emerging Markets

EPL Limited and Indovida India Private Limited have signed definitive agreements to merge, forming a $1 billion revenue entity with a combined valuation of ~$2 billion. This merger will create one of the largest emerging markets packaging platforms that combines complementary offerings and capabilities, expands global reach, enhances growth potential and improves margin and return metrics. 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. Indorama Ventures will become a co-promoter of the Company holding 51.8% ownership. Blackstone will own 16.6% stake in the merged entity. 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.