Mumbai: Asian Paints Ltd announced on Friday that it had acquired an additional 11% stake in White Teak, a home decor company for ₹54 crore. As part of their agreement, the paint company paid White Teak ₹59.5 crore as an earn out based on the achievement of financial milestones.
This brings Asian Paints' total stake in White Teak to 60%. The remaining 40% of the equity share capital would be acquired during the FY 2025 – 2026, for a maximum consideration ₹360 crores. The consideration would be based on achievement of defined financial milestones for the business.
White Teak is a private limited company engaged, inter alia, in the business to design, trade or otherwise deal in all types and description of decorative lighting products and fans.
Asian Paints had acquired 49% stake in White Teak for a consideration of Rs. 180 crores in April, 2022, s, along with an earn out upto a maximum of Rs. 114 crores, payable after a year, subject to achievement of mutually agreed financial milestones.
White Teak had a turnover of 108.5 crores in the fiscal year 2023. As of March 31, 2023, its net worth was 24.6 crores.
Shares of Asian Paints ended 1.5% higher at ₹3,297.7 apiece on the NSE.
