The Indian unit of Finnish packaging company Huhtamaki will acquire Ajanta Packaging (India) for Rs 100.3 crore ($15.5 million) in an all-cash deal.
The entire business of Ajanta Packaging is acquired as a going concern on a slump sale basis, Huhtamaki PPL Ltd, the local division of the Finnish firm, said in a stock-exchange disclosure.
The acquisition will help Huhtamaki in consolidating its position in pressure sensitive label business, it said.
The transaction is likely to be closed next month.
Ajanta Packaging, promoted by Sudhir and Chandan Khanna, manufactures pressure sensitive labels, baggage tags and security labels. It has manufacturing facilities at Daman and Baddi in Himachal Pradesh, according to its website. Its revenues stood at Rs 81.1 crore in the year through 31 March 2017.
Huhtamaki PPL, formerly known as The Paper Products Ltd, provides packaging solutions for labels, tube laminate webs, thermoformable laminates and promotional materials.
The company has 15 manufacturing facilities in the country. Its clients include Britannia, Coca Cola, Ferrero, Glaxo Smithkline, Marico, Mondelez, Nestle, Pepsico, Procter & Gamble and Unilever.
Huhtamaki’s income stood at Rs 564.94 crore and net profit was Rs 20.94 crore in the October-December quarter.
In 2015, Huhtamaki acquired Mumbai-based Positive Packaging Industries Ltd for Rs 818 crore ($136.6 million).
In 2012, it bought a 51% stake in Webtech Labels Pvt. Ltd, which manufactures labels for the pharmaceuticals sector, for Rs 37.7 crore ($ 6.94 million).