US private equity company Advent International has reportedly reached an agreement to sell its Indian packaging company Manjushree Technopack to investment business PAG for an enterprise value of approximately $1bn, according to Reuters, citing two sources with direct knowledge of the matter.

This move comes after Advent's initial plans to take the company public were set aside in favour of a sale.

The deal marks the end of the proposed initial public offering (IPO) process for Manjushree Technopack.

In August this year, Manjushree filed its IPO application with the Securities and Exchange Board of India, aiming to raise approximately Rs30bn ($355.5m). However, with the company's recent turn of events, the IPO has been shelved in favour of the acquisition by PAG.

Neither Advent nor PAG have offered comments regarding the transaction at this time.

Advent bought a minority stake in the company in 2018 from Kedaara Capital and was considering a public listing as the next step for growth.

Manjushree Technopack operates 23 manufacturing plants across 21 locations in India and holds more than 250 patents and designs.

The company launched its first recycling packaging plant in June 2020 in Bidadi Industrial Area, Bengaluru, with a reported processing capacity of more than 6,000 tonnes of rigid plastic post-consumer recycled resin a year.

The company manufactures packaging products in the agrochemicals, beverages, food, homecare, personal care, and pharmaceutical sectors.

It is also involved in developing sustainable packaging and offers lightweight solutions through various design innovations to its customers.