Essel Propack to acquire Essel Deutschland completely

Essel Propack has announced that it will be acquiring 100 per cent stake in Essel Deutschland Germany. This action will allow the company to increase its stake in the JV entity.

The company in its announcement to the bourses said that Lamitube Technologies Ltd (LTL), a wholly owned subsidiary of Essel Propack in Mauritius, has agreed to acquire the remaining 75 per cent share in Essel Deutschland Gmbh&Co. KG, Germany (EDG). EDG is a joint venture in which LTL is already holding 24.9 per cent share.

With this acquisition, the German JV will become a wholly owned indirect subsidiary of the company. EDG is in the business as Essel Propack.

According to the company announcement, this acquisition will help Essel improve the market share in Europe and create a strong platform for growth, especially in the non-oral care category. The acquisition is also expected to help better capacity utilisation of the Essel's Europe plants.

Essel Propack Ltd is a global leader in laminated plastic tubes catering to the FMCG and Pharma space. The acquisition will help company cross-sell its products and unlock the synergies.

Ram Ramaswamy, COO of Essel Propack said that the acquisition will enable the company to step up the productivity and efficiencies to those of other Essel Propack plants and improve overall profits.

The stock is up by almost 46 per cent over one year period.