Last Updated : Oct 29, 2020 09:42 AM IST | Source: Moneycontrol.com

Pidilite Industries share price rises 2% on acquisition of Huntsman Group arm

This acquisition is for a cash consideration of approximately Rs 2100 crore.

 
 
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Pidilite Industries share price rose 2 percent in the early trade on October 29 after the company acquired Indian subsidiary of Huntsman Group.

The company board approved 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), as per the release.

This said 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.

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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.

At 09:24 hrs Pidilite Industries was quoting at Rs 1,546.60, up Rs 28.00, or 1.84 percent on the BSE.
First Published on Oct 29, 2020 09:42 am
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