Ahmedabad-based Astral Poly Technik Ltd, a manufacturer and marketer of CPVC piping and plumbing systems, has acquired 80 per cent equity stake in UK-based adhesive and sealant products firm Seal It Services Limited for Rs 44 crore (over $7 million), according to a stock market disclosure.

Seal It Services provides a range of sealants, PU foam, chemicals and mixing concentrates, adhesives and DIY products for glazing, plumbing, tiles, flooring, roofing sectors, construction bitumen compound, water proofing, level and fire cement, cleaning product, tape and paints, PVA, etc.

It operates under the brand Bond-it and had sales of Rs 132.8 crore with EBITA of Rs 7.8 crore and net profit of Rs 4.5 crore last year. It has net debt of Rs 14.33 crore.

The company, which started in 2002, has its manufacturing unit at Elland in the UK and exports its products to Europe, Middle East and Africa.

Astral Poly Technik is looking to consolidate its adhesive and sealant business in the coming years and is also augmenting its manufacturing facilities in India.

KPMG provided financial due diligence and acted as the tax advisor to Astra Poly Technik for the transaction. National Law Firm was its legal advisor in India while Irwin Mitchell led the legal team in the UK for the deal. The transaction is financed by HSBC.

Astral Poly Technik posted a net profit of Rs 78.9 crore for the year ended March 31, 2014 against Rs 60.6 crore during the previous year. Its sales rose to Rs 1,080 crore against Rs 825.4 crore in the same period.

On Tuesday, shares of Astral Poly Technik were trading at Rs 846.90 each, down 0.23 per cent in early morning trades on the BSE in a flat Mumbai market.

The firm is backed by WestBridge Capital which holds 9.93 per cent stake in the listed company. 

(Edited by Joby Puthuparampil Johnson)

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