Industrial gases supplier Linde India, on Wednesday, announced that the company entered into a business transfer agreement with HPS Gases to acquire its packaged gases business and distribution assets.
The transaction is valued at ₹27.5 crore, an official statement informed.
Linde India inked the agreement with Vadodara-based HPS Gases on August 2 to acquire its entire packaged gases business along with certain distribution assets with effect from November 1, for an aggregate cash consideration of ₹27.5 crore," the statement added.
After signing the agreement, Abhijit Banerjee, MD, Linde India, commented, "HPS Gases is a strong player, and this acquisition will help expand Linde’s presence in the packaged gas and micro bulk market in western India."
As a part of this acquisition, the company will enter into other agreements with HPS Gases, viz. Asset Purchase Agreement, Non-Compete Agreement and Agreement for Product Supply and Purchase.
In line with these agreements, Linde India will supply liquid products to HPS Gases and purchase gases in packaged and mini bulk form from it under a long-term contract.
"We are happy and proud to be associated with one of the leading industrial gases companies of the world. This association will strengthen our position and help us grow as an organization," said Abhishek Gangwal, MD at HPS Gases.
HPS Gases is part of the privately held SKY Oxygen group - one of the oldest industrial gases players in western India operating since 1988.
Linde India shares closed in red at ₹1729.50, down 1.84 per cent on the BSE, Wednesday.