Pidilite Inds up 5% as company announces acquisition of Huntsman Advanced

  • The acquisition includes trademark licence for Middle East, Africa and ASEAN countries. HAMSPL manufactures and sells adhesives, sealants and other products under brands such as Araldite, Araldite Karpenter and Araseal in India

Ashwin Ramarathinam
Updated29 Oct 2020, 12:24 PM IST
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It can be noted that Fevicol is synonymous with adhesives to the millions here.
It can be noted that Fevicol is synonymous with adhesives to the millions here.(Twitter)

MUMBAI: Shares of Pidilite Industries rose 4.71% after the company signed a definitive agreement with Huntsman Group (USA) for acquiring a 100% stake in its India subsidiary Huntsman Advanced Materials Solutions (HAMSPL), for 2,100 crore.

At 12pm, the Pidilite Industries stock traded at 1,575.65, up 3.8% from its previous close, while the benchmark index Sensex was down 0.09% at 39887.63.

In 2019, HAMPSL had reported a revenue of 400 crore. In addition to the Indian sub-continent business, the acquisition includes a trademark licence for Middle East, Africa and ASEAN countries. HAMSPL manufactures and sells adhesives, sealants and other products under 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.

Bharat Puri, managing director, Pidilite Industries, said, "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.”

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First Published:29 Oct 2020, 12:24 PM IST
HomeMarketsStock MarketsPidilite Inds up 5% as company announces acquisition of Huntsman Advanced

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