French stationary major BIC Group, which owns 55 per cent stake in Cello Pens, a writing instrument business of Cello Group, has bought the remaining stake in Cello Pens for Rs 540 crore.
“Moving to 100 per cent ownership in Cello Pens is an opportunity to reinforce our position as India’s number one writing instrument brand and to further BIC’s development in Asia. We are confident in Cello Pens’ multicultural management team’s abilities to leverage the strong asset that is the Cello brand, driving toward strong mid and long-term growth potential,” said Bruno Bich, BIC chairman of the board, in a statement.
Quality
This acquisition will help accelerate Cello Pens’ growth in India and support its integration within the BIC stationery category, with a focus on investing in local manufacturing, safety, and quality, the statement said.
Founded in 1995 by the Rathod family, Cello Pens is the country’s largest manufacturer and distributor of writing instruments benefiting from a broad portfolio of quality products and a countrywide, as well as international, distribution network.
BIC, a world leader in stationery, lighters, shavers and promotional products, closed 2014 with sales of around 2 billion euro in 2014 and its products are sold in more than 160 countries.
In 2009, BIC agreed to acquire 40 per cent stake in Cello Pens for Rs 740 crore but the transaction was completed in 2013 due to a legal battle between the two parties.
Call option
Subsequently, BIC increased its stake in Cello Pen to 55 per cent paying another Rs 380 crore for a 15 per cent stake by exercising its call option, as agreed during the deal.
India is one of the largest and fastest growing stationery markets in the world, driven by increasing consumer purchasing power and literacy rate.
