APL Apollo Tubes, a New Delhi-based manufacturer of steel pipes and tubes, has acquired Lloyds Line Pipes Ltd for Rs 40 crore in a stock and cash deal. APL will pay Rs 20 crore in cash and the same amount in stock to Maharashtra-based Llyods. The shareholders of Llyods are   Lloyds Metals & Engineers Ltd (50%), Ankit Miglani (25%) and Anuj Miglani (25%).

The BSE-listed APL will also allot 1.13 million equity shares at a price of Rs 176 each to the shareholders of Llyods. The share price of APL closed at Rs 158.65 on Friday, up by 2.35%.

The deal would help APL expand its capacity from 400,000 TPA to 490,000 TPA, and reduce lead time for its customers in the western region besides increasing exports. Besides, APL has also entered into a deal with Shankara Pipes to expand its market base in Southern India and Western India. The company has also allotted equity shares worth Rs 7 crore to Shankara.

APL Apollo Tubes reported a 17% increase in revenues to Rs 618 crore with net profits going up by 430% to Rs 29.5 crore.

"The ongoing developments bear testimony to our focused growth strategy which would enable us to consolidate our leadership position in a promising market space. The acquisition of Lloyds would aid our presence in new markets and reinforce our position as a pan India player," said Sanjay Gupta, Chairman and Managing Director of APL Apollo Tubes.

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