Pidilite Industries share price rises 2% on acquisition of Huntsman Group arm
This acquisition is for a cash consideration of approximately Rs 2100 crore.
October 29, 2020 / 09:42 AM IST
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.
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.