Pidilite Industries Ltd, owner of Fevicol brand, has signed a definitive agreement with Huntsman Group (USA) for acquiring a 100 per cent stake in one of its subsidiaries in India - Huntsman Advanced Materials Solutions Pvt Ltd (HAMSPL) — for ₹2,100 crore.

HAMSPL manufactures and sells adhesives, sealants and other products under brands such as Araldite, Araldite Karpenter and Araseal in India.

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In the calendar year 2019, business revenue for HAMPSL was approximately ₹400 crore. In addition to the Indian sub-continent business, the acquisition includes a trademark licence for Middle East, Africa and ASEAN countries.

Under the terms of the agreement, Huntsman will receive approximately 90 per cent of the cash consideration at closing and balance approximately 10 per cent under an earnout within 18 months if the business achieves sales revenue in-line with 2019. The transaction is expected to close by next week.

Bharat Puri, Managing Director, Pidilite Industries, said: “With this acquisition, Araldite will add to the already very strong portfolio of Pidilite’s adhesive and sealant brands and will complement our retail portfolio. We are confident that this acquisition will create significant shareholder value through strong revenue and cost synergies. We look forward to warmly welcoming the HAMSPL team and the trade and business partners to the Pidilite family.”