Decorative laminates maker Greenlam Industries Ltd will acquire Switzerland-based decorative surfaces trader Decolan SA for 1 million Swiss francs ($994,000 or Rs 7 crore) in cash.
Greenlam said in a stock-exchange filing the acquisition will help it serve the European market with faster deliveries, better distribution control and service.
The company will make the acquisition through Singapore-based wholly owned subsidiary Greenlam Asia Pacific Pte. Ltd. The transaction is expected to be completed by 30 June.
Incorporated in 2012, Decolan is engaged in trading and distribution of decorative surfaces solutions and products such as high-pressure laminates, compact panels and related products. It has a warehouse in Italy.
Decolan caters to several European markets including Switzerland, Italy, the Netherlands, Belgium, France, Sweden, Norway, Croatia, Serbia, Bulgaria and Russia.
Decolan’s revenue was 2.86 million Swiss francs for the year through December 2018, as against 3.21 million Swiss francs the previous year.
Greenlam’s product portfolio includes decorative laminates, compact panels, decorative veneers, engineered wooden flooring and engineered wooden door sets.
The company has two factories--at Behror in Rajasthan and Nalagarh in Himachal Pradesh. The Behror plant has an annual capacity of 5.34 million laminate sheets and the Nalagarh plant has an annual capacity of 8.68 million laminate sheets. The Behror plant also makes melamine-faced chip boards, decorative veneers, engineered wooden flooring and engineered wooden doors, according to the company's annual report.
Private equity firm WestBridge Capital Partners, through its WestBridge Crossover Fund, held a 7.88% stake in Greenlam as on 31 December 2018.
Greenlam’s consolidated net revenue was Rs 1,145 crore for the year through March 2018, up from Rs 1,076 crore the previous year. Its net profit jumped to Rs 64.6 crore from Rs 49.7 crore.