Ahmedabad, Gujarat, 21st November 2014 – Astral Poly Technik Ltd. (BSE: 532830 | NSE: ASTRAL) (“Astral”), leaders in CPVC pipes and fittings industry in India, today announced that it has acquired 76% stake in Resinova Chemie Ltd. (“Resinova”) for Rs 212.8 crores. The transaction values Resinova atan Enterprise Valuation ofRs. 289 crores.
Resinova is engaged in manufacturing and marketingof a highly diversified range of adhesives and sealants in chemistries based on Epoxy Adhesives, Acrylics, UV Cure, Cyanoacrylates, Silicones, Anaerobic, PVA etc. The company’s products have varied applications including automobile, construction, chemicals, engineering, industrial, furniture, sanitary and household sectors. Resinovais amongst the leading players in epoxy adhesives sector in India.
Resinova sells its products in around 50 brands and 600 S.K.U.s. Some of the key brands of the company are “Bondtite”, “Resibond”, “Bondset”, “Solvobond”, “Vetra”, “Brushbond” and“Zesta” etc. The company’s supply chain network consists of 11 branch offices and more than 1,700 channel partners reaching out to around 4,00,000 retail outlets across India. Resinova had revenues of Rs. 218 crores for the twelve months period ending 30th September, 2014.
In August 2014, Astral had completed the acquisition of 80% stake in UK based Seal It Services Limited (“Seal-It”). Seal-It is engaged in manufacturing and selling a comprehensive range of Sealants, Adhesives, Water Proofing, Cleaning Products, Tape & Paints, PVA etc. used mainly in construction sector. Its products are sold under the brand name “Bond-it”. Astral also manufactures and sells plumbing adhesives in India under the brand name “Weld On” through its wholly owned subsidiary.
This acquisition will synergize with Astral’s existing businesses bydeepening and widening its product offerings. Astral believes that the combined brand development, product innovation skills and distribution reachof Astral, Seal-It and Resinova will enablebuilding a robust and valuable adhesive business. It is the intent of Astral towiden the presence of Resinovaby products, by geography and by customer segments.
Commenting on the transaction, Mr. Sandeep Engineer, Managing Director, Astral, said, “Astralhas established itself as a strong participant in the CPVC pipes and fittings sector and has gained recognition as a progressive player in the other related sectors. We see the adhesives business as the logical next step in building the Astral franchise. In high-growth Indian adhesive market, the Resinova acquisition provides a strong platform which is highlycomplementary to Astral’s strengths. We see tremendous growth opportunities and are excitedwith the prospects to create lasting value for our shareholders.”
Commenting on the transaction, Mr. Vijay Parikh, Managing Director, Resinova, said “This strategic move between two fast growing companies in synergistic sectors has exceptional potential to develop the adhesive market in India. Combined with Astral’s presence in international markets, thrust will be on using technical strength and distribution network of both companies to harness the potential of this business.”
Ambit Corporate Finance was the exclusive financial advisor, PwC was the financial due diligence advisorand Khaitan & Co. was the legal advisor to Astral on the above transaction. YES Bank was the exclusive financial advisor to Resinova.
About Astral Poly Technik Ltd:
Based in Ahmedabad, Gujarat, India, Astral Poly Technik Ltd. (“Astral”) is a diversified building materials manufacturing company engaged in the business of manufacturing of CPVC pipes & Fittings and Solvent Cements under its subsidiary company. Astral has PAN India presence across the country and having 400+ distributors and 18000+ dealers in India. The company has expanded its range of products which includes CPVC bendable Pipes& fittings, CPVC Fire Pipes & Fittings, CPVC Industrial Pipes & Fittings and All sort of PVC drainage, sewerage, Column and Plumbing Pipes & Fittings besides CPVC & PVC pluming solutions under the Royalty sharing agreement with IPS Corporation of USA. Astral is the first licensee of Lubrizol, USA to manufacture and market the CPVC plumbing systems in India.
Company Name: Astral Poly Technik Limited
Contact Person: Mr. Hiranand Savlani – CFO
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Address:207/1, Astral House, B/h. Rajpath Club, Off. S. G. Highway