Asian Paints Ltd, the country’s largest paints company by revenue, said on Thursday it has agreed to acquire Sri Lanka’s Causeway Paints Lanka (Pvt) Ltd to expand its overseas business.
The all-cash deal is aimed at enhancing the company’s operations in the island nation, Asian Paints said in a stock-exchange filing. It didn’t disclose the deal value.
The Indian company already operates in Sri Lanka through subsidiary Asian Paints (Lanka) Ltd.
Asian Paints is buying Causeway through its Singapore-based indirect unit Berger International Pvt Ltd.
The acquisition is subject to certain conditions and statutory approvals.
Causeway Paints began operations in 1994. It makes decorative and refinish paints for automotive and industrial clients, besides other products. It generated net sales of 5,630 million Sri Lankan rupee (Rs 253.60 crore) for the financial year 2015-16, up 37.5% from the year before.
Asian Paints was set up in 1942. It operates in 19 countries and runs 26 factories. The company posted net sales of Rs 12,545.8 crore for 2015-16, up from Rs 11,648.8 crore the year before.
The company has made several inorganic moves in the past to boost its home décor business. In 2014, it had acquired the front-end sales business of Punjab-based bathroom fittings and accessories manufacturer Ess Ess Bathroom Products Pvt Ltd.
The same year, the company bought a major stake in Ethiopia-based paint and adhesives maker Kadisco Chemical Industry Plc.
In 2013, Asian Paints had invested Rs 120 crore as part of a deal to buy a 51% stake in Sleek International Pvt Ltd, one of the top modular kitchen solutions firms in India.
Like this report? Sign up for our daily newsletter to get our top reports.