Sintex Industries acquires Automotive products business of Bright Brothers Ltd

Sintex Industries Ltd has announced that Bright Autoplastic Pvt Ltd, a downstream subsidiary of Sintex Holdings B.V. Netherland ("Sintex Offshore Holdings") is proposing to acquire the automotive products business division of Bright Brothers Ltd ("Bright Brothers") based in Chennai, Sohna, Pune, Pithampur and Nasik. on the terms Sintex Offshore Holdings is a wholly owned subsidiary of the Company.

Bright Brothers has a strong presence in automotive components which includes various body parts, instrument panels, console, trims, ultra sonic welding, hot plate welding, spray painting etc., consumer durable components which includes white good body parts like twin tube, agitators and styling parts to various reputed consumers goods manufacturers and branded products.

Commenting on the acquisition, Mr. Amit Patel, Managing Director, of the Company, said, "This acquisition represents a significant step towards us establishing a strong presence in the domestic plastic auto component market. Bright Brothers Ltd is a consistently performing high growth company, with a portfolio of established products that have tremendous potential, catering to leading OEMs in the domestic automobile segment. The acquisition which is earnings accretive will add strongly to Sintex's consolidated topline as well as bottomline, due to commonly shared synergies. It would also enable us to gain access to new and credible customers in the automotive space and would qualify us as a reputed manufacturer and supplier of automotive plastics in addition to our existing non auto plastic components product suite."

YES Bank Ltd was the exclusive strategic and financial advisor to Sintex Industries Ltd on the transaction. While Ambit Corporate Finance Pte Ltd. acted as the exclusive strategic and financial adviser to Bright Brothers Ltd.

This transaction follows the recent USD 20.5 mn acquisition by Sintex of Wausaukee Composites Inc, USA, a manufacturer of highly engineered composite plastic components.

Sintex Industries stock closed the day at Rs.329.25, up by Rs.9.15 or 2.86%. The stock hit an intraday high of Rs.350 and low of Rs.323.50. The total traded quantity was 301431 compared to 2 week average of 122630.

Source : Equity Bulls

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