Cosmo Films acquires GBC

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After getting a go ahead during its Board of Directors meeting held on January 29, 2009, Cosmo Films Ltd has announced the acquisition of GBC Commercial Print Finishing Business of the American Clip Company (ACCO). General Binding Corporation (GBC), which produces binding, display and lamination products, sells its equipments in Europe, America, Japan and other countries of the Pacific region.

Cosmo Films, a Delhi Based Bi-axially Oriented Polypropylene (BOPP) and lamination films producer generating global sales of $140 million, is planning to close the acquisition by the second quarter of 2009. Ashok Jaipuria, CEO, Cosmo Films, has said that this deal would bring large sales and technical expertise to India. GBC, which had a revenue of $100 million, has three plants located in Netherlands, Korea and US.

Falling EBIDTA margin of GBC led to the decision of selling off the business. ACCO and GBC have struck the deal for an undisclosed amount and Mr. Jaipuria claims that the deal will help them reduce production costs in film manufacturing. Cosmos has already started its project of setting up a manufacturing unit in Baroda with an investment of Rs 130 Crores.

BOPP Films are used in the production of Cosmetics-Toiletries, Label Films, Stationary, Self Adhesive Tapes, and Confectionary. Cosmo was recognised as one of the best 200 companies with revenue of 1 billion dollars outside US in a survey by FORBES.