The Hindu Business Line : Berger Paints set to acquire Polish firm for $38.6 m

The deal was being executed through a complete buy-out of Advent International, a global private equity investor, which holds 100 per cent stake in unlisted Bolix.

Berger is acquiring the external insulation and finishing system (EIFS) outfit through its Cyprus-domiciled wholly owned subsidiary.

Mr K.S. Dhingra, Chairman, Berger, on his way to Brussels, said, “The lawyers suggest that clearances from the European Competition Commission and the Polish anti-monopoly authorities may come within six to eight weeks.”

Under the terms, Advent has to provide a normative working capital for a year before the deal is through.

“If there is a difference between the estimated normative working capital, based on the average of peak and lean season requirements, and the actual provisioning, it would be adjusted with the net price.”

Ernst & Young and Tomczak & Partners are the financial advisors to Berger.

Bolix, a $45-million company, is the largest provider of EIFS in the B2B segment in Poland and also exports to Russia, Ukraine and the Baltic States. Bolix provides solutions for insulation and decorative requirements of external building walls.

The Berger Chairman said the proposed acquisition would provide synergy benefits to its presence in the Europe. “The proposed price reflects liability-adjusted NAV,” he explained.

Advent International also announced that it has agreed to sell Bolix to Berger. Mr Dhingra said Bolix is a profitable enterprise and relatively less debt-burdened.

Advent’s exit marks the outcome of a successful five-year development programme, following its acquisition in 2003.

In the last three years, Bolix has recorded double-digit revenue growth rates while maintaining high profitability.

More Stories on : Overseas Investments | Paints

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
BHEL to spend Rs 500 cr on R&D

Lupin adds to Suprax basket in US

Indoco changes financial year end

Monnet Ispat announces 25% interim

Shifts in business segments account for major growth in cos, says McKinsey

‘Reliance KG fields may go on stream by Aug’

Changes likely in depreciation norms for infrastructure projects

Srei building photovoltaic factory, power plant at Haldia

J.G. Hosiery on expansion mode

Berger Paints set to acquire Polish firm for $38.6 m

Tighten your belts, PM tells corporates

Mahindra plans ultra low-cost rural tractor

Issue of shares to foreign cos may be allowed against payment made to third party

MSD Pharma's new diabetic drug