BIC Group Increases Its Stake in Cello Pens: BIC Group Increases Its Stake in Cello Pens
BIC Group exercised its put option, resulting in the acquisition of 20 percent of Cello Pens, India's largest manufacturer and distributor of writing instruments, BIC Group announced today. This will bring BIC's ownership to 75 percent upon the closing of the acquisition, which is expected to cost 50 million euros and occur by the end of BIC's second quarter.
The deal, initiated in January 2009, began with BIC acquiring a 40 percent stake in Cello Group's seven entities, but after BIC completed the purchase of the first six entities, Cello management asked to terminate the deal the following year, according to Reuters. BIC declined and won arbitration proceedings in August 2010 to continue its 40 percent acquisition of the seventh entity—Cello Pens.
BIC also holds call options to raise its stake to as much as 90 percent by 2017. It raised its stake to 55 percent last year.
"The exercise of the call option allows us to increase our stake in a highly successful company focused, like we are, on delivering the highest quality products to consumers and that will contribute to BIC Group's long-term growth," Mario Guevara, CEO of BIC Group said in a September 2013 press release.
For more information, visit https://www.bicworld.com.