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INDIA BUSINESS WORLD - 1st FEBRUARY - TO - 15th FEBRUARY - 2009
DELHI-BASED COSMO FILMS ACQUIRES GBC COMMERCIAL PRINT FINISHING BUSINESS OF US-BASED ACCO BRANDS CORPORATION
COSMO Films has acquired GBC Commercial Print Finishing business of US-based ACCO Brands Corporation for an undisclosed sum. GBC which has $100 million in annual revenues is into thermal lamination films and binding equipment business.
Delhi-based Cosmo Films makes BOPP and thermal lamination films and has global sales of $140 million. The firm is targeting consolidated revenues of about Rs 1,500 crore next fiscal. GBC Commercial Print Finishing, which sells under brand GBC, provides thermal lamination films and equipment in various markets of Europe, North America, Japan and the Pacific Rim.
Currently, the firm has three manufacturing plants, one each in the US, Netherlands and Korea. Cosmo Films chairman Ashok Jaipuria said, “The deal with GBC Commercial print finishing business will complement our existing business and enhance global presence. By maximising the strengths of both organizations we will have a vertically integrated, financially robust organisation with broad management, sales and technical expertise.” The acquisition, which is expected to close in the second quarter of 2009, is subject to certain conditions and regulatory approvals. Terms of the transaction were not disclosed. GBC generates 90% of its revenues from thermal films business.
EBIDTA margin of GBC Commercial Print Finishing has been falling over the last 2-3 years, which prompted ACCO to divest the business. Our synergy with GBC will help reduce production costs, Mr Jaipuria added.
Cosmo films is setting up a new packaging films plant in Baroda with annual capacity of about 40,000 tonnes. The new plant will entail investments worth Rs 130 crore and be commissioned by March this year. Currently, the company has two packaging films and one thermal films plant in Aurangabad and Baroda. "We expect new plant to add Rs 300 crore to our topline this fiscal," said Mr Jaipuria.
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