Plastic packaging material maker Manjushree Technopack Ltd (MTL), backed by US private equity firm Advent International, said it will acquire a majority stake in Classy Kontainers. The company did not disclose the financial details of the transaction.
The Bengaluru-based firm will take over commercial operations and manufacturing facilities, and the deal is subject to customary closing conditions and regulatory approvals.
Sanjay Kapote, chief executive officer of MTL, said, "The acquisition is in line with our aggressive, inorganic growth and business diversification plans. It will allow us to consolidate our position as leaders in the rigid packaging sector and diversify our presence into new rigid packaging market segments -- paints, adhesives, and speciality chemicals space."
MTL was advised by Khaitan & Co and Classy Kontainers by Cyril Amarchand Mangaldas and Unaprime Investment Advisors on this deal.
MTL has sealed other deals in the past. In September 2020, it acquired New-Delhi based Pearl Polymers, which gave them access to four of the firm’s production units.
In a similar deal, MTL acquired a majority stake in Amritsar-based National Plastics. It also acquired Varahi Polymers in 2016 to establish a footprint in the north.
Incorporated in 1987, MTL provides packaging solutions, manufactures and sells plastics preforms, containers, and blow film. The company has an overall capacity of about 140,000 tonnes per annum.
It caters to packaging requirements of FMCG, pharma, and liquor companies and counts Coca-Cola, PepsiCo, Cadbury, GlaxoSmithKline, Procter & Gamble, Nestle, Heinz, Unilever, Tata Tea, Marico, United Spirits, and Diageo as its key clients.
