Pidilite Closes Araldite's Consumer & Bazaar Business Stakes Deal for 2, 100 Crore

Adhesives manufacturing major, Pidilite Industries is gaining interest in US-based Huntsman Group’s Indian subsidiary Huntsman Advanced Materials Solutions for a consideration of about 2,100 crore. This move has been initiated to take the company’s leadership position higher in the domestic adhesive market.

The company’s board has approved a definitive agreement with Huntsman Group for acquiring its complete stake in one of its subsidiaries in India at its meeting held on October 28. According to the company’s statement on the transactions, the deal has been finalized for about 2100 crore, eliminating the working capital and other adjustments, subject to certain preconditions being met prior to the closing of the transaction.

Huntsman Group’s subsidiary manufactures and sells Adhesives, Sealants, and other products under well-known brands such as Araldite, Araldite Karpenter, and Araseal in India. However, the company’s business revenue has been approximately 400 crore in 2019.

Talking about the acquisition, Apurva Parekh, Executive Director, Pidilite Industries says, "Araldite is an iconic brand and a market leader in Epoxy Adhesives in India. We are thankful for all the support extended by the Huntsman group and we are confident that our association will remain strong going forward as well."

The acquisition initiated by Pidilite also includes HAMSPL's Indian Sub-Continent business as well as a trademark license for Middle East, Africa, and ASEAN countries.

Huntsman Group is one of the leading global producers of differentiated organic chemical products. As per the term of condition, Huntsman would be receiving close to 90 percent of the cash consideration at closing and balance approximately 10 percent under an earnout within the next 18 months if the business achieves sales revenue in-line with 2019. The transaction is expected to close by next week. HAMSPL has a nation-wide distribution network and a strong presence in Retail Trade.

Bharat Puri, Managing Director, Pidilite Industries told IANS, "With this acquisition, Araldite will add to the already very strong portfolio of Pidilite's adhesive and sealant brands and will complement our retail portfolio. We are confident that this acquisition will create significant shareholder value through strong revenue and cost synergies. We look forward to warmly welcoming the HAMSPL team and the trade and business partners to the Pidilite family."

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