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Speciality packaging company Essel Propack today announced a complete buyout of its partner’s stake in Essel Deutschland Germany for $32 million (around Rs 214 crore).
Following the move, Essel Deutschland Germany (EDG) has become a cent percent subsidiary of Essel Propack, the company said in a statement.
The acquisition will help Essel to unlock synergies such as enhanced cross selling opportunity in German markets, sourcing flexibility and better capacity utilisation at all of its Europe plants, it added.
Prior to this, Essel had 24.9 per cent share in EDG.
Essel Propack Vice-Chairman and Managing Director Ashok Goel said, “The acquisition of EDG will further enhance our position in non-oral care category. This move is in keeping with our overall plans for achieving a revenue growth of 15 pert cent and PAT growth of 20 per cent and achieving our Mission 20:20:20.”
The Essel group firm has embarked on a mission 20:20:20 — EBITDA margin of 20 per cent, return on equity (ROE) at 20 per cent and return on capital employed (ROCE) at 20 per cent within the next 2 years.
“The EDG revenue of approximately $40 million will now be consolidated in Essel’s global revenue and will boost consolidated revenue by 11 per cent,” it added.
In FY16, Essel Propack’s consolidated revenue stood at Rs 2,184 crore.
Shares of Essel Propack ended the session higher by 5.52 per cent at Rs 235 on the BSE.
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