Pidilite announced that the board of directors at its meeting approved the acquisition of 70 percent stake in equity shares of CIPY Polyurethanes Pvt. Ltd. ("CIPY") subject to completion of certain conditions precedent.
CIPY was incorporated on November 29, 1994, and is engaged in the business of manufacture and sale of floor coatings using polyurethanes, epoxies, polyurea and polyaspartic polymers. The consideration will be in cash being an amount of Rs. 96.40 crores in aggregate payable to the existing shareholders of CIPY for the purchase of the portion of shares held by them in CIPY.
This acquisition will help the company to participate in the growth of the resin flooring and floor coatings market.
The turnover of CIPY was Rs. 110.40 crores for the year 2016-17.
Dr. Cipy, Managing Director of CIPY Polyurethanes Pvt. Ltd. said, "This partnership with Pidilite will make us stronger and accelerate growth in the floor coating category."
"We are excited to partner with CIPY. The acquisition of majority stake in CIPY will enable Pidilite to expand its presence in the fast-growing resin flooring and floor coating category," added Bharat Puri, Managing Director Pidilite Industries.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)