Ballarpur Industries (Bilt), part of the $4 billion Avantha Group, will acquire Bangalore-based Premier Tissues India. The deal has been closed at an Premier Tissues' enterprise value of around Rs 75 crore, which on an estimated EBITDA of Rs 9.6 crore for 2010-11, gives an EV/EBITDA multiple of about 8 times. However, the actual payout for Premier Tissues was not disclosed.

Revenues for Premier Tissues during 2009-10 stood at Rs 41.7 crore which is estimated to increase to Rs 50 crore in 2010-11, a statement said.

R R Vederah, managing director of BILT, said, “The acquisition is expected to be completed by the end of this month when BILT will take over the operations and management of the company from its existing management.”

With this acquisition, BILT will become the largest player in the Indian tissue paper market. While Premier Premier is strong in South and west India, BILT has a good presence in the northern part.

The size of the organised tissue paper market in India is estimated at around Rs. 1,200 crore.

Ballarpur Inds/BSE Rs 38.10 p

NSE Rs 38.30 p

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