Propack to buy 2 foreign firms

Packaging major Essel Propack has signed an agreement to acquire 100 per cent stake in US-based Tacpro Inc and Singapore-based Avalon Medical Services Pte Ltd, for an undisclosed amount.

The acquisition will take place in two phases. In the first phase, it will acquire 85 per cent stake by April 2006 with the balance 15 per cent to be bought in 2009, the company informed the Bombay Stock Exchange on Wednesday. The acquisition, is being conducted through its subsidiaries.

The companies are proven players in advanced medical device, design and development and have over 100 years of collective experience in the medical device industry.

Essel Propack has signed a share purchase agreement through its subsidiaries "� Lamitube Technologies of Mauritius and Lamitube Technologies of Cyprus "� which is subject to "certain conditions", it said.

According to Essel Group vice-chairman and MD Ashok Goel, "Medical devices arena is a new area of operation and our third area of interest, after laminated tubes and plastic tubes. Our objective is to leverage our knowledge of polymers and polymer processing so as to add a new dimension to our business".

The companies, Tacpro and Avalon have huge synergies notably the knowledge of polymers processing and global benchmark technology, it said.

The present CEO of the acquired company, Nitin Matani, will continue to manage the operations of the company, even as Essel Propack intends to retain the existing staff.