Even as promoters of Essel Propack, which is part of the $4.2 billion Essel Group, are in preliminary talks to sell a controlling stake in the company, already Amcor and Huhtamaki, two of global packaging giants have initiated talks in the acquisition business.
With Morgan Stanley managing the Essel Propack sale, more suitors are also expected to join the talks. Morgan Stanley has also reached out to potential suitors, which include private equity funds and strategic bidders.
Founded in 1982, Essel Propack is the largest specialty packaging manufacturer of laminated plastic tubes catering to the fast-moving consumer goods and pharma sectors. The company has 20 manufacturing facilities across 11 countries, including the US, Mexico, Colombia, Poland, Germany, the UK, Egypt, Russia, China, Philippines and India. It caters to diverse categories such as beauty and cosmetics, pharma and health, food, oral and home, and offers customized solutions in materials, technology and processes.
The promoters hold a 57.19 % stake in Essel Propack. The Finland based Huhtamaki is a global food packaging manufacturer. It offers disposable tableware, besides flexible packaging and labels for food and drink, pet food, pharmaceuticals, household and hygiene brands. Amcor is an Australian packaging company, which manufactures flexible packaging, rigid containers, specialty carton closures and services for food, beverage, pharmaceutical, medical-device, home and personal-care.