“We have entered right into a definitive settlement to purchase the patron and bazaar enterprise of the US-based Huntsman Group’s India arm — Huntsman Superior Supplies Options – for Rs 2,100 crore.
“The money consideration excludes customary working capital and different changes, topic to sure preconditions being met previous to the closing of the transaction. The settlement was signed final night time,” Pidilite Industries stated a press release.
The deal additionally consists of the corporate’s Indian subcontinent enterprise, aside from a trademark licence for the Center East, Africa and ASEAN nations, the assertion added.
It may be famous that Fevicol is synonymous with adhesives to the tens of millions right here. Its different main manufacturers embrace MSeal, Fevikwik, Fevistik, Roff, Dr.Fixit, Fevicryl, Motomax and Interest Concepts.
Huntsman had a income of round Rs 400 crore in 2019, from its operations right here. The Huntsman Group is a number one international producer of differentiated natural chemical merchandise.
Underneath the deal, Huntsman will obtain round 90 per cent of the money consideration at closing and steadiness round 10 per cent inside 18 months if the enterprise achieves gross sales income in-line with 2019. The transaction is predicted to shut by subsequent week.
“With this acquisition, Araldite will add to the already very robust portfolio of our adhesives and sealants and can complement our retail portfolio. We’re assured that this acquisition will create vital shareholder worth by way of robust income and value synergies,” Bharat Puri, thed managing director of Pidilite stated.
Apurva Parekh, an govt director at Pidilite stated, Araldite is an iconic model and a market chief in epoxy adhesives within the nation.
Pidilite is the market chief in adhesives and sealants, building chemical compounds, craftsmen merchandise, DIY (do-it-yourself) merchandise and polymer emulsions within the nation. It additionally sells paint chemical compounds, automotive chemical compounds, artwork supplies, and stationery, upkeep chemical compounds, industrial adhesives, industrial, textile resins and natural pigments and preparations.
Shares of Pidilite Industries have been buying and selling at Rs 1,558, up 2.61 per cent on the BSE.