Pidilite acquires consumer, bazaar biz of Araldite in Indian sub-continent

MUMBAI:

Fevicol maker

,

Pidilite Industries

has acquired one of US-based Huntsman Group’s subsidiaries in India for a cash consideration of approximately Rs 2,100 crore. The deal amount excludes customary working capital and other adjustments, subject to certain preconditions being met prior to the closing of the transaction.


The Board of Pidilite Industries on Thursday approved the company’s decision to acquire 100% stake in Huntsman Advanced Materials Solutions Private Limited (HAMSPL) which manufactures and sells

adhesives

, sealants and other products under brands such as Araldite, Araldite Karpenter and Araseal in India. In the calendar year 2019,

business revenue

was approximately Rs 400 crore. In addition to the Indian Sub-Continent business, the acquisition includes a trademark licence for the Middle East, Africa and ASEAN countries, Pidilite Industries said in a statement.

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.

HAMSPL has a nation-wide distribution network and a strong presence in Retail Trade.

Apurva Parekh

, executive director, Pidilite Industries, 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.”

Bharat Puri, MD, Pidilite Industries, 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.”