Pidilite Industries, the makers of the popular Fevicol brand of adhesives, is acquiring the Indian subsidiary of Huntsman Group for Rs 2,100 crore.
The acquisition will give it well-known brands such as Araldite, Araldite Karpenter and Araseal. Pidilite will be acquiring Huntsman Advanced Materials Solutions Pvt Ltd (HAMSPL), which makes adhesives, sealants and other products.
In a regulatory filing to the stock exchanges, Pidilite said while the acquisition will be done in cash, it excludes customary working capital and other adjustments, subject to certain preconditions being met prior to the closing of the transaction. The deal also includes the company’s Indian subcontinent business, apart from a trademark licence for West Asia, Africa and Asean countries.
Huntsman will receive around 90 per cent of the cash consideration at closing and the balance under an earn-out within 18 months if the business achieves sales revenue in line with 2019.
The transaction is expected to close by next week.
Huntsman had a revenue of around Rs 400 crore in 2019, from its operations here.
“Araldite will add to the already very strong portfolio of our adhesives and sealants and will complement our retail portfolio,” said Pidilite managing director Bharat Puri.
Shares of Pidilite closed with gains of around five per cent at Rs 1,590.35 on the BSE on Thursday.
