Germany plastic packaging maker Weener Plastik GmbH has acquired the stake held by local partners in its Indian subsidiary Weener Empire Plastic Ltd (WEPL) for an undisclosed amount.
Mumbai-headquartered WEPL was formed in 2008 with the merger of a string of firms, including Empire Plastics, Zenna Plastics and Ace Plastics with Weener Plastics Packaging Group (Germany) owning the company. The firm makes plastic containers and closures for the cosmetic, food & pharmaceutical industries.
The deal resulted in the merged entity becoming a subsidiary of Weener but local shareholders continued to own a minority stake. This has been acquired now.
However, AB Gupta, who is the managing director of WEPL, and Abhinav Gupta, director of the firm, will continue on the board of the Indian operations in their existing capacity.
“This acquisition is aligned to our strategy of enhancing our footprint in the emerging markets. WEPL has performed well in the past years and we hope to add to the growth further in the coming years,” said Roel Zeevat, CEO of Weener Plastic Packaging Group.
The transaction was completed three weeks ago. C. W. Downer acted as the financial advisors to Weener Plastik Gmbh, Germany. Khaitan & Co was the legal advisor for the transaction.
WEPL has seven factories spread across four states and its customer portfolio includes companies like Johnson & Johnson, L'Oreal, Ferrero, Ranbaxy, Dey's Medical, Wipro and Oriflame.
Weener is now looking at increased focus on organic growth through existing and new clients in India.
(Edited by Joby Puthuparampil Johnson)