Pune-based Bilcare Ltd, through its German subsidiary Bilcare AG, is acquiring the global film business of UK-based INEOS group for Rs 607 crore ($130 million or €100 million). The business had annual sales of Rs 1,458 crore or €240 million, more than Bilcare's revenues of Rs 1,065 crore in FY10.
The two firms have entered into a non-binding agreement and the deal is expected to be closed by the end of August. Ineos is one of the world's leading chemical companies with 15,000 employees and sales of $28.6 billion in 2009.
INEOS Films is a producer of high quality polymer films and the deal would cover assets and personnel related to the operations located in North America, Europe and Asia. Bilcare AG is one of the world’s leading providers of research led packaging to the global pharmaceuticals industry.
Ineos Films is a major player in the world of pharmaceutical blister packaging, films for printing and decoration, shrink film for sleeves, capsules and plastic credit cards. The company employs around 1,300 people across manufacturing sites in Germany, Italy, India and North America.
The share price of Bilcare rose by more than 17% today before settling down to Rs 488, still up by nearly 10%. Bilcare has a market cap of Rs 1,107 crore at this price. One of its largest shareholders include Rakesh Jhunjhunwala, who has around a 9% stake.
“This acquisition is a paradigm shift in the pharma packaging space & a significant step towards creating a customer centric company to deliver path breaking innovations and establish global leadership,” said Mohan Bhandari, Chairman of Bilcare Limited, in a release.
“Whilst performing well, the INEOS Films business is no longer core to the INEOS Group as the company focuses its attention on its large-scale petrochemicals businesses. This agreement with Bilcare will put INEOS Films assets and people at the centre of a new business with the innovation and drive necessary for it to grow and further develop, which is good for the business and its customers globally,” said Iain Hogan, CEO of Ineos Films.
Bilcare had earlier acquired Singapore's Singular ID, which provides integrated high technology enterprise brand security system, for S$19.58 million in 2008. In 2006, it bought DHP Limited, a UK-based clinical trials services provider.
Bilcare report sale of Rs 1,065 crore in FY10 with a net profit of Rs 117 crore as compared to sales of Rs 864 crore and a net profit of Rs 83 crore in previous fiscal.