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In what is seen as a foray into adhesives and sealants segment for a plumbing solutions provider, Ahmedabad-based Astral Poly Technik Ltd today announced that the company has acquired controlling stake – 80 per cent stake in UK-based adhesives and sealants maker, Seal IT Services Ltd for a consideration of Rs 44 crore (GBP 4.4 million).
The acquisition will enable India’s leading chlorinated polyvinyl chloride (CPVC) pipes maker, Astral to mark an entry into India’s adhesives market, pegged at about Rs 6,000 crore.
Astral currently has a number of new products in the adhesives and sealants segment at R & D stage.
Sandeep Engineer, MD, Astral Poly Technik says, “This product has very good business opportunity in B to C business segment. We believe that there is a very big market for these products in India and the neighbouring countries and the same could contribute largely to the growth of the company, both in terms of revenue and its bottomline.”
Astral’s strong network of over 400 distributors and more than 18,000 dealers across the country would provide an easy access to the market.
Formed in 2002, SEAL IT Services Ltd has its manufacturing facilities at Elland, UK having 40,000 sq feet area with R & D facilities at plant. It sells its products under brand name of ‘BOND IT’, which is UK’s leading independent manufacturers of sealants, adhesives, waterproofing compounds and other building chemicals.
Presently, SEAL IT is exporting its products throughout Europe, Africa and Middle East.
SEAL IT will provide the technology to Astral, which may also manufacture products locally if required under their international brand name ‘BOND IT’. Astral will also explore the Middle East market from its Indian manufacturing operations in because of the logistics and cost advantages.
The deal is a part of SEAL IT’s aggressive plans for expansion. Commenting on the deal, David Moore, managing director at SEAL IT, said, “The additional backing will enable us to accelerate ambitious and global plans for the future, and to offer our growing customer base more products in more volumes than ever before. We will also be able to make further investments into those areas which make a real difference to customers - such as product development and sales support.”
Global leader KPMG was the financial advisor for the deal, while Law firm Irwin Mitchell was legal advisor. HSBC funded the entire transaction.
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