Bain in talks to acquire Indian packaging company Parksons for $411m

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Bain Capital is in talks to buy Daman-based Parksons Packaging Ltd for more than 3,000 crore ($411 million), two people aware of the discussions said, as the US private equity firm plots to bolster its portfolio of packaging businesses.

Parksons, India’s largest independent folding carton manufacturer that also makes paper-based labels, leaflets and corrugated boxes, recorded 500 crore revenue in 2019-20. Kedaara Capital purchased a significant minority stake worth 200 crore in the company in 2015.

“Parksons has steadily ramped up its business over the past three years and the pandemic has pushed up demand for packaging. The discussion for a complete sell-off of Parksons is in advanced stages. Kedaara will also get an exit,” said one of the two people cited above, both of whom spoke seeking anonymity.

Parksons has appointed Credit Suisse as its investment banker for the transaction, which is likely to be concluded in the next three months, the people cited above said.

Queries emailed to Parksons and Bain Capital remained unanswered.

“The fear of contracting covid is still lingering, which is pushing customers to order household goods and essentials online. This is why global investors are looking to grab investment opportunities in the packaging space, even if valuations come with a premium,” the person cited above added.

Parksons’ top clients include Coca-Cola, McDonald’s, KFC and Hindustan Unilever, besides several popular food and beverages, home and personal care and healthcare brands. Rising demand for packaging of household, medical, edible and lifestyle products is a key reason leading private equity firms to look at deepening their foothold in the packaging industry, especially in emerging economies such as India and China.

In March 2018, Bain announced the acquisition of World Wide Packaging LLC, a leading provider of cosmetic packaging components, plastic tubes, and formulation and filling technologies in the US.

The article was first published on livemint.com.

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.