Ficus Pax, the Bangalore-based specialised provider of transport packaging goods and services, is understood to be closing in on an important strategic move to offload 50 per cent stake to a German global corporation in a healthy transaction.
According to investment bankers who are in the know about the transaction, Ficus Pax is expected to be valued at as much as 20 times its operating profit of Rs 12 crore, taking the enterprise valuation close to Rs 250 crore. Ficus Pax is understood to be closing the present fiscal with revenues of Rs 120 crore. A spokesperson of Ficus Pax offered not to comment for this story.
Ficus Pax was started in August 1999 as a partnership company with the intention to offer packaging solutions to Indian exporters with a focus in the area of high precision and quality-grade packaging of sensitive and fragile equipment. The company is on an aggressive expansion mode and in addition to the seven plants presently operational across India, there are independent satellite fabrication plants being set up in Dubai, Hyderabad, Jaipur and Gujarat which will be operational by 2015 and by that time revenues are expected to touch the Rs 300 crore mark. In addition to the expansion plans, Ficus Pax is focusing on new products which are eco-friendly and gradually replacing wood and plywood being used in its products.
According to investment bankers, the strategic transaction will enable Ficus Pax to expand their global reach, get access to advanced technology, while in turn the German company will get a strong foothold in the fast-growing Indian market. Ficus Pax has been receiving lot of interest from global PE and strategic investors and is understood to have taken over a year to finalise a strategic fit in the German major. "Ficus Pax was looking at a partner who will add immense value as it seeks to expand on a global platform," an investment banker in the know added.
Ficus Pax has a blue-chip client list including GE Healthcare Group, NCR, DISA, ABB, Yokogawa, American Power Conversion, Larsen & Toubro, Tata Solar, Nokia, Nokia Siemens, Rane Group, Suzlon Energy, Moser Baer, XL telecom and many others.
The cross-border deals such as these have been growing at a steady pace and on an overall basis during February 2013, a total of $3 billion worth of deals, including M&A and PE were reported. Said Raja Lahiri - Partner, Transaction Advisory Services at Grant Thornton India LLP, a tax and advisory firm : "With the 2013 budget being done and government's focus to control fiscal deficit and bring back growth, we expect the deal momentum to pick up in 2013."
Hopefully with cross-border action coming back in sectors like aviation, media, retail, pharma among others."
