Berger Paints to acquire 95.53 per cent in waterproofing co STPL for Rs 167.5 cr

Abhishek Law Kolkata | Updated on October 15, 2019

Kolkata-based Berger Paints India Ltd will acquire 95.53 per cent of STP Ltd (STPL), which is primarily into waterproofing and protective coatings, at a cash consideration of Rs 167.5 crore. The acquisition is likely to be completed by November 30.

STP Ltd is an unlisted entity based out of Kolkata and reported a revenue of Rs 174.2 crore in FY-19. According to the company website, the company is a member of the Turner Morrison Group, formerly known as Shalimar Tar Products Ltd, and has been a leader in the Indian waterproofing/ damp-proofing market. STPL has six manufacturing facilities (one each at Goa, Ambattur, Hooghly, Kosi Kotwan, Jamshedpur and Panoli).

In a stock market notification, Berger Paints said STPL is engaged in the manufacture and supply of construction chemicals, concrete admixtures, waterproofing chemicals, flooring compounds, bitumen and coal tar-based products, sealants and adhesives, protective and anti-corrosive coatings.

The acquisition will help Berger complement its existing businesses, “where the two entities can combine their strengths and collaborate in the areas of manufacturing, selling, distribution, procurement and technology.”

Berger will acquire 1,88,63,180 equity shares of STPL, or 95.53 per cent of the paid-up equity share capital. The balance 4.47 per cent of the paid-up equity share capital of STPL will be held by the existing shareholders of STPL.

“The transaction is likely to be completed by November 30, 2019. The shares of STPL will be acquired at an enterprise value of Rs 167.5 crore, subject to the usual closing adjustments on account of networking capital, net debt and adjustments on account of indemnities,” it further said.

Published on October 15, 2019

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