Treofan to acquire Max Speciality Films

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.