BIC Acquires Cello Pens, India s largest manufacturer and distributor of writing instruments

COMPANY

Cello Pens

COMPANY TYPE

Unlisted

INDUSTRY

Manufacturing

SECTOR

Pens

CITY (TARGET)

Mumbai

COUNTRY (TARGET)

India

WEBSITE

http://cello.tradeindia.com

 

 

ACQUIRER

BIC

ACQUIRER COMPANY TYPE

Unlisted

INDUSTRY (ACQUIRER)

Manufacturing

 

CITY (ACQUIRER)

Clichy

COUNTRY (ACQUIRER)

France


Cello Pens is India s largest manufacturer and distributor of writing instruments and it has apresence in Africa, Middle-East and Asia.The Acquisition of Cello Pens was first publicly disclosed in early 2009 with an offer valuation of 790 Cr for 40% stake in the Indian Firm and then raising it. The deal however found itself deteriorate as a legal fight ensued between Cello and BIC.

The acquisition was finally completed in late 2015.

Given below is the time line of the Acquisition and its stages of progression:

 

In May 2009, BIC Group acquired 40% of 6 entities out of 7 that formed Cello Pens for a total of INR 380 Cr.

In May of 2013, BIC Group Acquired 40% of the 7th entity for INR 370 Cr and in September an additional 15% was acquired in all 7 entities for 290 Cr.

In July 2014, BIC Group acquired 20% shares in all 7 entities of Cello Pens for 430 Cr.

In December 2015, BIC Group finally completed the acquisition by buying the remaining 25% stake for INR 540Cr.


EV Calculation:
Equity Valuation = INR 2155.56 Cr
Debt (FY15) = INR 0.49 Cr
Cash and Bank Balances (FY15) = INR 391.31 Cr
EV = INR 1764.74 Cr

The target names are as follows,
Cello Plastic Products Private Ltd - BIC Cello (India) Private Ltd (new name)
Cello Writing Aids Private Ltd - BIC-Cello Exports Private Ltd (new name)
Cello Stationery Products Private Ltd
Cello Tips and Pens Private Ltd
Pentek Pen and Stationery Private Ltd
Cello Writing Instruments and Containers Private Ltd
Cello Pens Private Ltd.

 

Source: https://www.bicworld.com/sites/default/files/2017-03/BIC_DRF2016_EN.pdf