Blackstone-backed EPL to merge with Indovida to make $2 billion packaging giant

Private equity giant Blackstone and Thailand’s Indorama Ventures have agreed to merge their packaging businesses in India, creating a $2 billion giant with annual sales of about $1 billion.

Blackstone-backed EPL hit the stock exchanges on Sunday with Indorama’s hard packaging venture Indovida India Pvt. He stated that he signed definitive agreements with. Ltd. It was decided to merge through share exchange. Once the merger is completed, Indorama will hold a 51.8% stake in the combined entity and be its co-backer, while Blackstone’s holding will remain at 16.6%. Indorama currently owns 24.9% in EPL, formerly Essel Propack Ltd, while Blackstone owns about 26.5%.

Post-merger, EPL will continue as a listed entity. Indorama will nominate at least three directors to the board, while Blackstone will nominate one person. The merger establishes a multi-format packaging platform operating primarily in emerging markets, the Mumbai-based company said in a filing to the stock exchanges. Since it is a share exchange, there is no regulatory obligation to make an open offer to minority shareholders.

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“Post-merger, 75% of the total business will come from under-penetrated emerging markets, which is expected to increase both earnings before interest and tax (Ebit) and return on capital employed (ROCE),” said EPL CEO Hemant Bakshi, who will lead the merged entity as group chief executive officer. Sunil Marwah will continue reporting to Bakshi as chief executive officer (CEO) of Indovida business.

Essel Packaging was founded in 1982 under Subhash Chandra’s Essel Group. Following its merger with the Swiss company Propack in 1997, it was renamed Essel Propack. Over the next two decades, Essel Propack established a strong international footprint in the Americas, Europe, Asia and Africa.

In 2019, Blackstone invested $460 million to acquire a 75% stake in the company and changed its name to EPL. The private equity firm later sold a 23% stake in EPL in a block deal for $252 million in September 2020. In May 2025, Indorama Ventures acquired 24.9% of EPL, while Blackstone’s stake fell to approximately 26.5%. Some of its domestic rivals include PAG-backed Manjushree Technopack, Japanese major Huhtamaki Co and Warburg Pincus-backed Parksons Packaging.

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Indovida is valued at approximately $700 million, which represents a 35% discount based on the valuation multiple applied to EPL, the company statement said. The swap ratio determining this structure was recommended by independent valuers BDO and Duff & Phelps, and EY provided a “fair view”, the press release said.

Bakshi, who expects the necessary regulatory approvals to be received within 12 months, said EPL will benefit from Indovida’s presence in markets such as Nigeria, Tanzania, Ghana and Vietnam (geographies where EPL has no historical presence).

Independent experts valued the EPL business at 12.5 times Ebitda; This means a valuation of $1.2 billion and a share price of $1.2 billion. ₹339, Bakshi said. This represents a 70% premium over the current trading price ₹205. Moreover, Bakshi said that EPL’s business was valued at a 55% premium over the Indovida business.

Financially, the merger is structured to increase earnings per share from the first day of operations. Bakshi explained that based on 2025 metrics, the merger increased the operation’s EBITDA margin to 13.6% for the combined entity, from 12.4% for EPL alone. He added that ROCE is expected to increase from 18.7% to 20.9% in the same period.

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Bakshi explained that the Indovida business is a net cash-containing asset, which will result in the combined debt-to-EBITDA ratio falling to 0.25, creating a healthy balance sheet with significant firepower for future inorganic growth. “This merger directly addresses the company’s strategic objectives by entering rigid plastics, a $100 billion global market,” Bakshi added.

Bakshi explained that EPL is always considering more options for inorganic growth, but future acquisitions will follow three specific criteria. “Entering new geographies, building new capabilities or formats such as caps and closures, and ensuring the deals are margin enhancing.”

On March 18, Mint It reported that prices of key inputs for the packaging industry, such as PET resin (used for plastic bottles) and polyolefins (used for bottle caps, labels and bags), rose by 40% to 80% in weeks, driven by the West Asian war and subsequent global crude oil volatility.