Pidilite Industries Ltd has signed a definitive agreement with Huntsman Group (USA) to acquire 100 percent stake in one of its subsidiaries in India, Huntsman Advanced Materials Solutions Private Ltd (HAMSPL). The company’s board approved this at its meeting on 28 October. This is for a cash consideration of approximately INR2,100 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. In 2019, the company’s business revenue was approximately INR400 Cr. In addition to the Indian Sub-Continent business, the acquisition includes a Trademark licence for Middle East, Africa and ASEAN countries, said Pidilite in a statement.
Under the deal, Huntsman will receive approximately 90 percent of the cash consideration at closing and balance approximately 10 percent under an earnout within 18 months if the business achieves sales revenue in line with 2019.
“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,” said Apurva Parekh, Executive Director, Pidilite Industries Limited.
“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,” said Bharat Puri, Managing Director, Pidilite Industries.