Chennai, Nov 13 (IANS): Specialty packaging major EPL Ltd's (formerly Essel Propack Ltd) cash (about Rs 157.9 crore) cum stock acquisition of competitor Creative Stylo Packs Pvt Ltd is expected to create synergies in business as well as strengthen its market position, the company said.

In a regulatory filing EPL said its Board of Directors has approved the acquisition of the Rs 103.13 crore Creative Stylo in a cash-cum-stock deal.

EPL will pay cash of about Rs 157.9 crore for 72.46 per cent stake in Creative Stylo. In addition, EPL will employ Creative Stylo's founders -- Bhavik Shah and Darshan Shah -- at an annual cost of Rs 1 crore each or for a mutually agreed amount.

The remaining 27.5 per cent stake will be purchased through issuance of EPL shares to the founders of Creative Stylo post the merger.

The Creative Stylo enterprise has been valued at Rs 253.9 crore. The company's notable clients are Zydus Wellness, Marico, Himalaya, Loreal and Joy.

"The acquisition would help in creating synergies in terms of similar business processes, resources etc. and will strengthen the Company's position in the industry in terms of revenue, business volume and market share," EPL said.

EPL expects the transaction to close by the last quarter of FY21.

EPL said it hopes to become a large player in the hand wash category in tubes going forward.