Premier Tissues to acquire UK tissue converting co

BANGALORE: Bangalore-based Premier Tissues (PTIL) is all set to acquire a UK tissue converting company. The deal is estimated to be worth 8-10 million pounds, said GG Shenoy, MD, PTIL. The funding for the deal is being worked out and the company's bankers -- Bank of India and Export Import Bank of India -- have evinced interest to fund the deal. We are also considering to fund the deal through the venture capital route and are in discussion with a few VCs, Mr Shenoy said.

The deal is likely to be completed by March 2007. On completing the acquisition, PTIL would relocate the target to their existing plant near Mysore, after which the total exports by the company to UK alone would be to the extent of about 15 million pounds, Mr Shenoy said.

Presently Premier Tissues is one of the largest exporters of tissue products to UK and it will get distinct advantage with this acquisition. With the expansion, we will be able to export about 700 tonnes of tissue products per month by February 2007,he said.

Mr Shenoy added, With this overseas acquisition, the bottom line of the company will improve substantially since the expanded capacity will be fully utilised from day one and the total turnover of the company for 2007-08 is projected at Rs. 175 crore.