French glass and building materials manufacturer Sain-Gobain has entered into a definitive agreement to acquire glass wool insulation manufacturer UP Twiga for an undisclosed sum.
This transaction is subject to regulatory approval and completion of certain conditions, Saint-Gobain said in a filing with the London Stock Exchange. It is expected to be completed by the end of the first quarter of 2023.
UP Twiga operates two manufacturing facilities near Delhi and Mumbai. The company has been a licensee of Saint-Gobain technology since 2005 for the manufacture of glass wool in India.
Shares of Saint-Gobain rose sharply in intra-day trade to end Wednesday's session at Rs 90.15 apiece, up 1.3%.
To be sure, the glass manufacturer last acquired Rockwool India Pvt. Ltd in December 2021. Rockwool is a manufacturer of stone wool in India.
Saint-Gobain currently operates 33 manufacturing sites across India. The Indian unit reported net sales of Rs 7,434.5 crore on a profit after tax of Rs 916 crore for FY22, according to VCCEdge.
The company is announcing its FY23 results on 23 February.
On October 27, Saint-Gobain said that Asia –Pacific driven by India and Southeast Asia reported strong sales for the nine-month period ended 30 September.
“Asia-Pacific reported 28.7% organic growth over the nine-month period and 26.9% in the third quarter, driven by India and South-East Asia. India delivered another excellent performance thanks to market share gains and an integrated and innovative range of solutions which are rolled out to new customers. A total of 75 “MyHome by Saint-Gobain” showrooms were deployed in just one year in the country,” the firm said in October.
Lincoln International was the financial adviser to the seller. Shardul Amarchand and Mangaldas was the sellers’ legal adviser while J Sagar and Associates was the legal adviser to the buyer.
