Mumbai-based adhesives maker Pidilite Industries Ltd has received board’s approval to acquire 70% stake in floor coating maker CIPY Polyurethanes Pvt. Ltd for Rs 96.4 crore ($15.2 million) in an all-cash deal.
The acquisition will help Pidilite participate in the growth of the resin flooring and floor coatings market, the firm said in a stock-exchange disclosure.
“The acquisition of majority stake in CIPY will enable Pidilite to expand its presence in the resin flooring and floor coating category,” said Bharat Puri, managing director, Pidilite Industries.
“The partnership with Pidilite will make us stronger and accelerate growth in the floor coating category,” said Subash Cipy, managing director, CIPY Polyurethanes.
The acquisition is expected to be completed within two months.
Pune-based CIPY Polyurethanes was founded by Subash Cipy in 1994. It manufactures and sells floor coatings using polyurethanes, epoxies, polyurea and polyaspartic polymers.
The company’s turnover stood at Rs 110.40 crore in the year through 31 March 2017.
Pidilite manufactures adhesives and glues. The company’s three key product lines are adhesives and sealants, construction chemicals and paint chemicals, and art and craft materials. It has six manufacturing locations in the country. Its brands include Fevicol, MSeal, Dr.Fixit and Fevikwik.
The company posted consolidated net sales of Rs 6,062.3 crore and a profit after tax was Rs 863.2 crore in the year through 31 March 2017.
In 2016, it formed a joint-venture ICA Pidilite Pvt. Ltd with Italy-based wood finish manufacturer Industria Chimica Adriatica Spa (ICA). The joint-venture distributes ICA’s products.
In 2016, Pidilite acquired Nebula East Africa Pvt. Ltd through its subsidiaries. In 2015, it acquired a 70% stake in Nina Waterproofing Systems Ltd.
