JK Paper (NSE:JKPAPER), one of India’s largest paper and packaging solutions companies, has entered into a Share Purchase Agreement (SPA) to acquire 100% of the shares of Manipal Utility Packaging Solutions Private Limited (MUPSPL).
Special Purchase Acquisition Terms
The company, as per a regulatory filing, has formally entered into a Share Purchase Agreement (SPA) for the complete acquisition of Manipal Utility Packaging Solutions Pvt Ltd (MUPSPL), encompassing 100% of its shares.
According to the SPA terms, JK Paper will procure 4.07 crore equity shares, equivalent to 100% of MUPSPL’s capital, at a rate of Rs 21.80 per equity share, each with a face value of Rs 10. The agreement also allows for adjustments as outlined in its terms.
MUPSPL is involved in the manufacturing of packaging products, including folding cartons, corrugated boxes, and labels, and operates four manufacturing plants across the country. In the fiscal year 2022-23, MUPSPL reported revenues of Rs. 147.77 crores. The packaging sector is one of the fastest-growing segments in the Indian paper and packaging industry, driven by increased demand from end-use industries such as Food & Beverage and FMCG.
MUPSPL’s Customers yo gain from JK Paper Expertise
MUPSPL’s customers, employees, vendors, and partners are expected to benefit from JK Paper’s extensive manufacturing expertise, strong operational standards, financial management, and corporate governance.
JK Paper Ltd. feels the acquisition aligns with the company’s long-term strategic goals in the packaging business. As it offers an opportunity to provide comprehensive solutions to customers for secondary and tertiary packaging. Thus, enhancing operational efficiencies, and ensure the continued growth and value addition for MUPSPL’s stakeholders.
About JK Paper Limited
JK Paper Ltd. is a market leader in branded copier paper in India. JK Paper Ltd. is among the top producers of coated paper and packaging products in the country. The company focuses on value-added products such as copier paper, bond paper, security paper, coated papers, virgin fiber packaging boards, high-end maplitho paper, food-grade papers, boards, and corrugated boxes. Additionally, JK Paper Ltd. emphasizes its commitment to being a wood and carbon-positive company.
About Manipal Utility Pakaging Solutions Private Limited
Manipal Utility Packaging Solutions Private Limited (MUPSPL) is a packaging solutions company in India. It was incorporated in 2008, headquartered in Manipal, and operates four plants across India. Key customer segments for the company include FMCG, Food & Beverage, Pharma, Cosmetics, among others.
From conceptualization to creation, MUPSPL excels in crafting dynamic designs that seamlessly combine aesthetics with practicality for all types of cartons. It utilizes the latest computer-aided carton design software. The division delivers packaging solutions to various sectors, with a particular focus on pharmaceuticals, food and beverages, as well as personal care products and toiletries. It also provides packaging solutions in the form of mono-cartons, trays, holders, and corrugated boxes.