Delhi-based Max India has agreed to sell its packaging material maker unit Max Speciality Films (MSF) to German-based Treofan in a deal worth Rs 540 crore.

Announcing the deal, the diversified firm said, "Treofan, which develops and sells BOPP films… has offered an enterprise value of Rs 540 crore to acquire 100 per cent stake in Max Speciality Films.”

Max India chairman Analjit Singh said the sold the business so that they could focus on their key portfolio of service oriented businesses of life.

However the deal is subject to various conditions, such as financing, confirmatory due diligence and a material adverse change clause.

Biaxially Oriented Polypropylene (BOPP) film unit MSF has capacity of around 50,000 tonnes per annum. It has achieved specialization in manufacturing different types of special BOPP films, such as multilayer white opaque films, leather finishing foils, and ultra-high barrier metalised plain films.

Products produced by MSF are used in food packaging, over-wrapping, consumer products, as well as textile industries.

Stock of Max India jumped 3.54 per cent to close at Rs 190.35 a share on the Bombay Stock Exchange (BSE) on Monday.