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.