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 of 100% equity in 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.