Introduction & Background

Client, a Florida-based company, is a leading packaging and protective solutions firm with a USD 1.5 billion revenue. It operates 34 sites, employs 4,200 people, and produces paper and film-based tapes for sealing and plumbing repair. Holding a 20-30% market share, it's the second-largest tape producer in North America.

Objective: Client sought to enhance its competitiveness in the North American Market through the strategic acquisition of a PE Woven product company. To achieve this, IPG engaged Tecnova as its lead M&A advisor to facilitate the acquisition of100% equity in Air trax Polymers, an Indian firm.

Tecnova’s Role

Tecnova advised Client on a strategic approach for acquiring the business in two tranches.

This staggered strategy aimed to enhance negotiation leverage and facilitate a smoother acquisition process.

By acquiring the business in tranches, Client could retain the owners with a minority share in the initial phase, ensuring continuity and leveraging their expertise.

Retaining the previous owners with a minority share provided an opportunity to utilize their skills and knowledge to further growth business post-investment.

Tecnova's recommendation allowed Client to secure the acquisition while optimizing negotiation terms and post-acquisition growth strategies.

Conclusion

Client now possesses full ownership (100%) of the Indian company as a result of Tecnova's involvement.

Over a span of 5 years, Client has expanded the business significantly, achieving a growth rate of 4.5 times its original size.

The primary objective of establishing a highly competitive manufacturing site in India to serve the North American markets has been successfully realized.

Tecnova's role facilitated Client in navigating the acquisition process and implementing strategic initiatives, leading to substantial growth and attainment of strategic objectives within the stipulated timeframe.