Treofan offer Enterprise Value of Rs 540 crore for MSF
New Delhi 10 Sept 2012 The Board of Max India Limited, one of India’s leading multi-business conglomerates, today approved divestment of its profitable Biaxially Oriented Polypropylene (BOPP) Film division, Max Speciality Films to Treofan, a German global technology leader for BOPP film.
Treofan, which develops and sells BOPP films in over 90 countries around the world has already production facilities in Europe and the Americas, and has offered an Enterprise Value of Rs 540 crore to acquire 100% stake in Max Speciality Films. The offer from Treofan is subject to financing, a material adverse change clause, confirmatory due diligence, execution of mutually satisfactory sale and purchase agreements, management retention, formal approval from Treofan’s Advisory Board and receipt of regulatory and corporate approvals.
Max Speciality Films division is a strategic business unit of Max India. With a BOPP capacity of approx. 50,000 tonnes per annum (TPA), it is one of the leading Indian players in development and manufacture of specialty BOPP films, including multilayer white opaque films, ultra high barrier metalized plain films and leather finishing foils. Its products are used by leading players in food packaging, overwrapping, consumer products, labels and textile industries. A consistent winner of various quality and performance awards, MSF, last fiscal year before the ramp-up of the new line, registered revenue of Rs. 703 crore, a growth of 77% over its revenue in the previous fiscal. The EBIDTA also witnessed an increase of 50% over previous fiscal to reach Rs. 77 crore.
The decision to divest is consistent with Max India Group’s strategy to a focus on service oriented ‘businesses of life’. Max India generated revenues of around Rs 8,200 crore in FY12 across all its businesses, which in addition to Max Specialty Films includes Max Life (the largest private life insurer in India); Max Healthcare (focused on providing tertiary specialties in North India with1900 beds ); Max Bupa (dedicated health insurance business with more than 300,000 lives covered); Max Neeman, focused on Clinical Research; and Antara, a recently announced investment in the Senior Living Business.
Talking about the decision, Mr. Analjit Singh, Chairman Max India Limited said, “It was always a tough decision for us to divest the oldest business in our portfolio. MSF has been a well run business since many years now, a quality leader with a highly competent leadership team and a highly motivated workforce. It was an emotional decision for me personally, but the Board and Management rightly decided that it made good business sense to focus on our portfolio of service oriented businesses of life.”
Mr. Rahul Khosla, Managing Director, Max India said, “Max Speciality Films has been a strong and dependable performer for Max India with a consistent track record of topline and bottom line growth based in excellent products, processes, management leadership and innovation. We wish them the best and are sure that the expertise and access to global customers through the new parent Treofan will elevate this business to the growth trajectory they truly deserve. For Max India, this divesture will allow us to focus on our synergistic service focused businesses of life and the additional funds will provide us several options to invest in our growth.”
Mr. Mohit Talwar, Deputy Managing Director, Max India said, “There were several global players that evinced interest in acquiring the business, however we decided to progress further with Treofan, as we believe they are the natural owners of the business.”
Treofan Group is a global technology leader for biaxially oriented polypropylene film (BOPP). It develops, manufactures and markets its products under the brand names Treofan® and Treopore®. Treofan offers the most diverse and comprehensive product range within the industry, providing packaging, label and tobacco film applications as well as films for electronic devices, such as capacitors.
Max India Group is a multi-business corporate, driven by the spirit of enterprise and focused on people and service oriented businesses. The Company is headquartered in New Delhi, India. Max India is in the ‘Business of Life’ with its vision is to be one of India’s most admired corporates for Service Excellence. It ‘Protects Life’ through its Life Insurance subsidiary Max Life, a joint venture between Max India and Mutsui Sumitomo; ‘Cares for Life’ through its Healthcare company, Max Healthcare, a joint venture between Max India and Life Healthcare, South Africa; ‘Enhances Life’ through its Health Insurance company, Max Bupa Health Insurance, a joint venture between Max India and Bupa Finance Plc., UK; ‘Rejuvenates Life’ through its Senior Living business Antara, a fully owned subsidiary of Max India and ‘Improves Life’ through its Clinical Research business, Max Neeman, a fully owned subsidiary of Max India. The Group also continues its interest in manufacture of Speciality Products for the packaging industry through its strategic business unitMax Speciality Films.
The flagship company Max India Limited is a widely held public listed entity, with the owner sponsors, led by Analjit Singh holding over 37% stake. Its other shareholders include some of world’s best Institutional Investors such as, Goldman Sachs, International Finance Corporation, Washington (IFC) and Temasek Holdings.
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