JK Group, has announced the acquisition of a 72 per cent controlling stake in Borkar Packaging for Rs 235 crore in cash, deepening its play in the packaging segment.
In a stock exchange filing on Monday, JK Paper said it will acquire 65.7 per cent of the Goa-based folding carton manufacturer from existing shareholders and an additional 6.3 per cent through subscription to fresh equity shares. The remaining 28 per cent is expected to be acquired over the next four years, subject to conditions laid out in the share purchase agreement.
This marks JK Paper’s fifth acquisition in the packaging sector in the last three years as it continues to diversify beyond its traditional paper manufacturing business. According to media reports, the enterprise value of Borkar Packaging, including its debt, was pegged at around Rs 450 crore in this transaction.
Borkar had been exploring capital infusion options since last year and had engaged with multiple suitors to raise Rs 400–500 crore. Japanese packaging major Oji Holdings, Investcorp-backed Canpac Trends, and ITC were among the parties that had expressed interest in acquiring Borkar.
JK Paper’s aggressive M&A strategy aligns with its broader vision to grow in high-margin packaging segments such as folding cartons, corrugated packaging, and flexible laminates. The acquisition of Borkar adds to its packaging footprint after recent investments in companies like Horizon Packs and Securipax Packaging.
News Courtesy : Business World
