Indian packaging firms EPL and Indovida have signed definitive agreements to merge in a deal that values the combined entity at around $2 billion, Indovida parent firm Indorama Ventures Ltd (IVL) said on Monday.
Thailand-listed IVL will become a co-promoter with a 51.8% stake in the merged firm, while US asset management firm Blackstone will own 16.6% stake in the entity, the company said in a statement.
IVL currently has a 24.9% stake in Indian flexible packaging firm EPL.
Indovida is 100% owned by IVL and produces preforms, bottles and closures for food & beverages, healthcare and consumer markets.
The deal remains subject to regulatory, court, and shareholder approvals and is expected to close in around 12 months.
The planned merger will transform EPL from a flexible packaging specialist into a multi-format platform serving global brands across emerging markets, IVL said.
“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 said.
EPL produces laminated plastic tubes via 21 manufacturing facilities globally, with sites in India’s Maharashtra and Gujarat states, among others.
Indovida has 19 manufacturing sites across nine countries primarily in southeast Asia and Africa, with key facilities located in India’s Himachal Pradesh, West Bengal, and Uttar Pradesh.