Asia Pacific-focused private equity firm PAG, which counts Nuvama Wealth Management, Sekhmet Pharmaventures and Acme Formulations among its investments in India, has inked a couple of deals in the Indian packaging industry.
The PE firm on Monday announced the acquisition of a majority stake in Pravesha Industries Pvt. Ltd and confirmed signing definitive documents to invest in Manjushree Technopack Ltd, which is controlled by Advent International.
PAG didn’t disclose the financial terms of either transaction. However, people close to the development said that it struck the Pravesha deal at an enterprise value of $200 million and that it agreed to acquire Manushree from Advent at a valuation of $1 billion.
The announcement comes barely months after VCCircle first reported that PAG was the frontrunner to pick up a controlling stake in Pravesha.
Pravesha focuses on the pharmaceutical industry. Founded in 1999, Pravesha produces more than 15,000 tonnes of plastic bottles, closures and drums and more than 2 billion units of cartons, labels and leaflets annually for global pharmaceutical companies. Close to 95% of its packaging products are used in developed markets including the US and Europe.
Manjushree is a rigid plastic packaging company focused on a diversified base of customers including home care, personal care, food and beverages, paints, nutraceuticals, agrochemical, liquor and spirits, and dairy. Manjushree had also filed draft papers last year for a Rs 3,000-crore initial public offering but it is now likely to drop those plans.
“India’s packaging sector has been one of our focuses given its exposure to key themes driven by India’s domestic manufacturing, consumer and industrial sectors, particularly the strength of the country’s pharma export industry," said Nikhil Srivastava, Partner, managing director and head of India private equity at PAG.
PAG manages over $55 billion in capital across real estate, credit, and private equity businesses. It manages four pan-Asian buyout funds and two growth funds.
The PE firm last year raised $550 million from the likes of Mubadala for its first renewable energy fund, which focuses on investments in physical assets in Asia and counts solar power in Japan its primary target. It has been investing in India since 2009 across multiple strategies and business sectors and manages over $3 billion in assets in India.
PAG’s other portfolio companies in India include Nuvama Wealth, a large wealth management player; Sekhmet, a diversified pharmaceutical platform; and Acme, a contract drug development and manufacturing company.