Comments
HIL, part of the $1.8-billion diversified CK Birla Group, completed the acquisition of Germany-based Parador Holdings GmbH today.
HIL, which was formerly known as Hyderabad Industries Ltd, is a building solutions company.
The closing meeting also kicks off the process of integration of operations. Parador continues to be the category leader in design and innovation with all products developed internally and produced with ‘Made in Germany’ and ‘Made in Austria’ quality.
Wholly owned subsidiary
HIL’s wholly owned subsidiary HIL International GmbH, will own 100 per cent equity capital of Parador Holdings GmbH. The transaction was completed with shareholders of Parador Holdings GmbH wherein Dhirup Roy Choudhary represented as Managing Director & CEO, HIL Ltd, and Managing Director, HIL International GmbH.
The all-cash consideration is being funded by HIL through a combination of Euro debt, rupee debt and internal accruals. With this, the debt-equity ratio of HIL on a standalone basis will be at 0.55 and on a consolidated basis will be at 1.0.
Consolidated financials
Consolidated financials of Parador Holdings GmbH and HIL is expected to be published as on March 31, 2019 along with the annual results. The consolidation will take into account the Parador financial for the period from September 1, 2018 to March 31, 2019 in the first year in line with IND AS requirements.
CK Birla, Chairman of the CK Birla Group, said: “We look forward to a very successful association with Parador to create a stronger combined entity. As we pursue the identified complementarities between our businesses, HIL will emerge even stronger within its field globally, delivering sustainable value to all its stakeholders.”
HIL’s Managing Director & CEO Dhirup Roy Choudhary said, “Our vision of moulding HIL into a global building material solutions specialist is a step closer with the consummation of the Parador acquisition. Besides augmenting our business mix into flooring solutions, we are looking at leveraging the trade relationships and market understanding of Parador to strengthen our business position. Parador brings with itself best-in-class technology, brand equity, market access and robust financials and will complement HILs growth aspiration going forward.”
With strong underlying momentum in the core businesses comprising roofing solutions and building solutions, Parador only enhances possibilities for sustainable delivery of performance. Growth in the flooring solution product line finds an attractive demand profile outside the home market in South East Asia, South Africa and India.
Established in 1946, HIL Ltd is a flagship company of the CK Birla Group.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.