Intertape, the Canadian packaging company with executive headquarters in Sarasota County, announced Thursday it is making a “greenfield” investment in Capstone Polyweave Private Limited, which plans to build a $30 million manufacturing facility in Karoli, India. Capstone’s shareholders also own and operate Delhi-based Airtrax Polymers Private Limited, which manufactures and sells woven products that are used in the building and construction industry. Airtrax posted $11 million in revenues for the year ended March 31.

reported the Sarasota Herald.

Cyril Amarchand Mangaldas Delhi partner Manishi Pathak and tax partner SR Patnaik acted for Intertape, together with PwC as financial and tax advisor.

Shardul Amarchand Mangaldas advised Capstone Polyweave Private Limited, Airtrax and their promoters Anil Jain and Raj Jain on the strategic partnership, led by partner Akila Agrawal, and including Mr. Sourav partner Kanti De Biswas, principal associate Megha Bhargava, and associate Akshay. Employment law elements were handled by partner Pooja Ramchandani, and senior associate Vaibhav Bhardwaj.

According to Shardul Amarchand’s press release:

IPG will be partnering with the current shareholders of Capstone, who are also the shareholders and operators of Airtrax Polymers Private Limited (Airtrax). The principal purpose of the partnership will be to provide IPG with a globally-competitive supply of certain woven products. For the transaction, IPG will form a Joint Venture with Capstone, a newly incorporated entity into which the existing woven products business of Airtrax will be demerged. Airtrax manufactures and sells woven products primarily to the domestic market in India that are used in various applications, including in the building and construction industry.

As a part of the transaction, IPG entered into an agreement to acquire a majority stake in Capstone, a newly-formed enterprise in India, which is expected to lead to a greenfield investment by Capstone. IPG will be partnering with the current shareholders of Capstone, who are also the shareholders of Airtrax. The existing business of Airtrax will be demerged into Capstone through a court process.

IPG will ultimately acquire a 55% interest in Capstone for a cash consideration of approximately USD 13 million. The current shareholders of both Airtrax and Capstone will contribute in kind the net assets attributed to Airtrax’s existing woven product manufacturing operations, which are estimated to have a value of approximately USD 12 million. The completion of these transactions is subject to customary conditions.

The deal is valued at approximately $25 million. The deal was signed on June 14, 2017 and the closing will take place in tranches, with the final closing expected in December 2017.