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Our Bureau

Mumbai , Aug 5

HAVING established itself as the world's leading manufacturer of laminated tubes, Essel Propack is now eyeing the plastic tube segment and has announced the acquisition of 100 per cent stake in Arista Tubes of UK.

However, the company did not specify the investment it has made in this acquisition citing competitive reasons.

The acquisition has been made through Lamitube Technologies Ltd, Mauritius, a wholly owned subsidiary of Essel Propack.

Arista Tubes is the leading manufacturer of plastic seamless tubes in UK. The tubes are used in cosmetics, personal care, toiletries and pharmaceutical sectors.

Essel Propack at present has a plastic seamless tubes plant at Wada, India. It has a 30 per cent share in the global laminated tube market.

"More than the acquisition of Arista Tubes, I term this as an acquisition of knowledge in plastic tubes technology, entry into new markets and new opportunities. This, indeed, is a quantum leap for Essel Propack, aimed at broadening our market offering which I am sure will infuse an accelerated growth," the company said in a news release quoting Mr Ashok Goel, Vice Chairman & Managing Director, Essel Propack.

Arista Tubes, according to Mr R. Chandrasekhar, Chief Operating Officer, Essel Propack, has a strong presence not only in UK but also in Europe. "Through this acquisition we will get access into the high-end premium user base of Arista and a new territory. It is not a volume game but a value proposition," he said.

Essel Propack's move into plastic tube segment is also aimed at diversifying its business portfolio while reducing its risk with a single product business, he said.

Arista Tubes, UK, founded in 1998, manufactures plastic seamless tubes for cosmetics, personal care, toiletries and pharmaceutical segments. The Company has 30 per cent market share in UK and Ireland and caters to the speciality packaging needs of globally reputed cosmetics, personal care and pharmaceuticals majors in Europe.

The Company has an integrated manufacturing facility at Stevenage, located 30 miles north of London.

The management team at Arista Tubes headed by Mr Jeremy Paul, Managing Director, Mr Ben Stephens, Director Finance & Company Secretary, and Evelyn Tweedlie, Director sales, will continue to run the operations of the Company.

Essel's advisors to the deal were Rabo India Finance Private Limited, Deloitte Haskins & Sells, and ANS Law Associates.

More Stories on : Mergers & Acquisitions | Packaging

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