Pidilite Industries acquires Huntsman Group’s Indian unit
Shares of Pidilite Industries surged more than 4% Thursday, after the Fevicol adhesive maker acquired Indian subsidiary of Huntsman Group.
The board approved a definitive agreement with Huntsman Group (USA) for acquiring 100% stake of Indian subsidiary.
This acquisition is for a cash consideration of approximately Rs 2100 crore, excluding customary working capital and other adjustments, subject to certain preconditions being met prior to the closing of the transaction.
HAMSPL manufactures and sells adhesives, sealants and other products under well-known brands such as Araldite, Araldite Karpenter and Araseal in India.
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.
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