EPL Ltd (formerly known as Essel Propack Ltd), a specialty packaging company, has received board approval to acquire Creative Stylo Packs Pvt Ltd in a part-cash and part-stock deal.

Creative Stylo Packs is an established manufacturer of corrugated boxes, laminated tubes, plastic co-ex tubes and caps -- primarily serving the personal care, cosmetic, pharmaceuticals and FMCG markets in India.

The transaction entails purchase of 72.5 per cent stake in Creative Stylo Packs through cash. The remaining 27.5 per cent stake will be purchased through issuance of EPL shares to the founders of Creative Stylo Pack post the merger, the company said in a regulatory statement.

Post the acquisition, Creative Stylo Packs founders Bhavik Shah and Darshan Shah will join the EPL management team.

“We believe that our acquisition of Creative will enrich our portfolio, enabling us to advance our ambition in personalcare. This will also strengthen us further in AMESA (Africa, Middle East and South Asia), a key growth region for us,” EPL’s Managing Director and CEO, Sudhanshu Vats, said.

With this acquisition, EPL plans to make a stronger play in the beauty and cosmetics categories which are 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.

EY was the exclusive financial advisor on the transaction. Trilegal was the legal advisor for EPL and Cyril Amarchand was the legal advisor for Creative. KPMG provided transaction advisory services.

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