French graphic design services and pre-media agency Diadeis has acquired Mumbai-based marketing services group Alia’s pre-media packaging unit for an undisclosed amount, marking its foray into the Asian market, according to a press release. Some media reports pegged the deal value at around $10 million, citing sources.
Post-acquisition, Diadeis will infuse more capital to strengthen Alia's operations and technology. The Indian unit will focus on new opportunities in markets like China, Singapore, including options for tuck-in acquisitions. Diadeis will also use the Indian centre as a design hub for European markets, as per the company statement.
This would leverage India as a low-cost service provider given that estimates suggest production cost of pre-media designs in Europe is four to five times higher compared with that of India.
Alia’s pre-media clients include Unilever, Cadbury-Kraft, Nestle, Danone, L'Oreal, GSK, LVMH and Renault, the statement showed.
Jean-Charles Morisseau, chairman of Diadeis, said, “More and more brand owners are thinking their packaging production on a large geographical scale, trusting a supplier with a brand or a business unit globally. With the addition of Alia’s skills and expertise in India, Diadeis reinforces its position as a top player in the $2 billion pre-media market.”
"Alia with its strong Asia, Middle East and South Africa presence will complement and enhance Diadeis’ global footprint," Alia Group promoter Sanjeev Malhotra said in the statement.
Merisis Advisors acted as an exclusive advisor to Alia Group in this transaction.
This is the third such divestment by Alia Group. It had previously sold some businesses to Future Group and to Persistent Systems.
(Edited by Joby Puthuparampil Johnson)