Pidilite Industries Ltd. (Pidilite) a leading manufacturer of adhesives, sealants, construction chemicals, consumer adhesive, and specialty chemicals has entered into a definitive agreement with Tenax SPA (Tenax Italy) for acquiring 70% of the share capital of Tenax India Stone Products Pvt. Ltd. (Tenax India) for cash consideration of approx. Rs. 80 crore (depending upon actual working capital and cash at the time of closing).
Tenax Italy is the leading manufacturer of adhesives, coating, surface treatment chemicals and abrasives for the marble, granite and stone Industry. Tenax India, incorporated in 2005, is a subsidiary of Tenax Italy engaged in the sales and distribution of Tenax Italy products for the retail market in India.
Mr. Bharat Puri, Managing Director, Pidilite Industries Ltd. said "This acquisition will help expand Pidilite's presence in the fast-growing adhesives, coatings and surface treatment chemicals market for the marble and stone Industry and bring world class technology to India by investing in a manufacturing plant."
Mr. Igino Bombana, Group President, Tenax SPA said "We are excited about the partnership between Pidilite and Tenax spa to consolidate our presence in the fast-growing retail market in India and adjacent SAARC markets" through Tenax India Stone Products Pvt. Ltd.
Post the acquisition, Tenax India will become a subsidiary of Pidilite. This acquisition by Pidilite will enable Tenax India to fully leverage the sales, distribution and marketing capability of Pidilite in India and SAARC markets. Tenax Italy will continue to be a partner (having 30% stake) in Tenax India and provide full support to Tenax India through its technical and market understanding of marble, granite and stones business in India and SAARC markets.
Shares of PIDILITE INDUSTRIES LTD. was last trading in BSE at Rs.1557 as compared to the previous close of Rs. 1535.65. The total number of shares traded during the day was 22058 in over 1634 trades.
The stock hit an intraday high of Rs. 1562.35 and intraday low of 1528. The net turnover during the day was Rs. 34219139.