BIC Group, the stationery, lighters and razors business, has agreed to acquire a 40 per cent stake in Cello Pens, the Cello Group’s writing instruments business, for €124 million (£117 million) in cash.

BIC Group, the stationery, lighters and razors business, has agreed to acquire a 40 per cent stake in Cello Pens, the Cello Group’s writing instruments business, for €124 million (£117 million) in cash.

The deal will be funded through debt and gives BIC a call option to increase its stake to 55 per cent at a price based on Cello Pens’ future performance.

Cello Pens is India’s largest manufacturer and distributor of writing instruments, with 37 per cent market share and a presence in Africa, the Middle East and Asia.

The 40 per cent stake gives BIC access to the fast-growing Indian market, which is in line with its expansionist ambitions of developing its business in new regions and strengthening its position in emerging markets.

Bruno Bich, BIC chariman, said: “One of the reasons for the success of BIC’s strategy since the beginning has been to build an international presence. India is one of the largest and fastest-growing markets in the world. This partnership with the number-one Indian writing instruments company is a tremendous opportunity. It will reinforce the long-term prospects for both BIC and Cello Pens and generate value for our shareholders.”