Pidilite Industries announced it has entered a definitive agreement with Huntsman Group (USA) for acquiring 100% stake in one of their subsidiaries in India namely, Huntsman Advanced Materials Solutions Private Limited (HAMSPL) for Rs 2100 crores.
HAMSPL manufactures and sells Adhesives, Sealants and other products under well-known brands such as Araldite, Araldite Karpenter and Araseal in India. HAMSPL has a nation-wide distribution network and a strong presence in Retail Trade. Huntsman Group is a leading global producer of differentiated organic chemical products.
Under the terms of the agreement, Huntsman will receive approximately 90% of the cash consideration at closing and balance approximately 10% under an earnout within 18 months if the business achieves sales revenue in-line with 2019. The transaction is expected to close by next week, Pidilite mentioned in their press release.
Commenting on the deal, Apurva Parekh, Executive Director, Pidilite Industries Limited, said: “Araldite is an iconic brand and a market leader in Epoxy Adhesives in India. We are thankful for all the support extended by the Huntsman group and we are confident that our association will remain strong going forward as well.”
Speaking about the acquisition, Bharat Puri, Managing Director, Pidilite Industries Limited, said: “With this acquisition, Araldite will add to the already very strong portfolio of Pidilite’s adhesive and sealant brands and will complement our retail portfolio. We are confident that this acquisition will create significant shareholder value through strong revenue and cost synergies. We look forward to warmly welcoming the HAMSPL team and the trade and business partners to the Pidilite family.”
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