Acrysil Ltd, a quartz and stainless steel kitchen sink manufacturing and trading company, has acquired 74 per cent stake in UK-based kitchen sink distribution company Homestyle Products Ltd for Rs 20.50 crore ($3.3 million), as per a release. The transaction has been funded through internal accruals and debt.
It will also acquire the remaining 26 per cent stake over a period of three years, the company said.
Homestyle Products is in the business of importing and marketing kitchen sinks principally in the UK market. It also deals in faucets and allied products. The company achieved a turnover of £2.35 million (approximately Rs 23 crore) with EBITDA of £0.54 million (approx Rs 5.3 crore) for the year ended June 30, 2014.
The acquisition, which has been made by Acrysil UK Ltd, Acrysil’s wholly-owned subsidiary, will help the firm expand its global footprint and to enter the UK market for kitchen sinks and accessories. Currently, the firm exports its products to over 35 countries including the US, France, Germany and Russia.
Acrysil plans to use the Homestyle Products’ marketing network to introduce other items from its bouquet of products like kitchen chimneys and cook tops in the UK market. The firm will also leverage Homestyle Products’ platform to cater to the European market and accelerate growth of its exports to Europe.
Founded by Ashwin M Parekh in the late 80s, Acrysil deals in kitchen built-in appliances and faucets apart from kitchen sinks, which include composite quartz granite sinks and stainless steel sinks. The firm owns the CARYSIL brand. In FY14, it generated around 74 per cent of its total turnover from exports.
Deloitte Touche Tohmatsu India Pvt Ltd and CMS Cameron McKenna LLP acted as financial advisor & legal advisor, respectively, to Acrysil Ltd whereas Dow Schofield Watts Corporate Finance Ltd and Squire Patton Boggs (UK) LLP acted as financial advisor & legal advisor, respectively, to the shareholders of Homestyle Products.
Shares of Acrysil were trading at Rs 601.05 each, down 0.11 per cent on BSE in a flat mid-day Mumbai market on Wednesday.
(Edited by Joby Puthuparampil Johnson)