Mumbai-based EPL (formerly known as Essel Propack), the specialty packaging company, announced on 12 November 2020 that its board of directors have approved the acquisition of Creative Stylo Packs in a part-cash and part-stock transaction. Creative Stylo Packs is known to be an established manufacturer of corrugated boxes, laminated tubes, plastic co-ex tubes, and caps-primarily serving personal care, cosmetic, pharmaceuticals, and FMCG markets in India.
According to EPL, the transaction entails purchasing a 72.5% stake in Creative Stylo Packs through cash. The remaining 27.5% stake will be purchased through the issuance of EPL shares to the founders of Creative Stylo Pack post the merger. Bhavik Shah and Darshan Shah, the founders of Creative Stylo Packs, will join the EPL management team post the acquisition.
With this acquisition, EPL plans to make a much stronger play in the beauty and cosmetics categories, growing rapidly. The richer product portfolio will allow it to serve both existing and new customers better, driving both volumes and value. The acquisition will also boost EPL’s plastic tube capabilities, which, combined with EPL’s strong equity in laminate tubes, gives the company a vibrant platform for growth. The transaction will accelerate revenue and EBITDA growth for EPL, it said.
EPL’s managing director and chief executive officer, Sudhanshu Vats, said, “EPL is committed to leading the pack; simultaneously driving market leading revenue growth as well as capital-efficient and consistent earnings growth. A stronger play in beauty and cosmetics is key to this vision. We believe that our acquisition of Creative will enrich our portfolio, enabling us to advance our ambition in personal care. This will also strengthen us further in AMESA (Africa, Middle East and South Asia), a key growth region for us.”
He further added, “I am personally delighted to welcome Bhavik and Darshan to the EPL fold. Their entrepreneurial spirit and youthful energy will help us move forward with greater purpose & agility.”
Speaking on the occasion, Bhavik Shah, founder of Creative Stylo Packs, said, “Darshan and I are extremely proud of what we have created thus far through innovation and customer centricity and now we have an opportunity to continue and accelerate the growth path through the EPL platform. We are really excited and look forward to working with the EPL team in furthering their cause of being a leading specialty packaging company in the World.”
With an oral care volume share of 36% globally, EPL has units operating across the USA, Mexico, Colombia, Poland, Germany, Egypt, Russia, China, Philippines, and India. These facilities cater to five core categories of oral care, beauty and cosmetics, pharma and health, food and nutrition, and home care; offering customized solutions through constant innovations in materials, technology, design, and processes.