Paint manufacturer Berger Paints India Ltd has completed the acquisition of specialty coatings maker Saboo Coatings Pvt. Ltd, it said in a stock-exchange filing on Tuesday.
It acquired Saboo Coatings' shares for Rs 81.77 crore, subject to closing adjustments for variations in net debt and working capital.
Following the transaction, which was approved by the Berger Paints board on May 30, Saboo Coatings is a fully-owned subsidiary of Berger Paints, the filing added.
The acquisition of Saboo Coatings, which makes specialty liquid coatings used in farm and construction equipment, automobiles, fans, electronics, elevators, handicrafts and home furnishing, will boost Berger Paints' industrial coatings business.
On May 30, Berger Paints' board also approved the acquisition of a 51% stake in Saboo-Hesse Wood Coatings Pvt. Ltd, which sells acrylic wooden coating. The balance 49% in the subsidiary is held by Hesse Shares GmbH of Germany. This deal will complement Berger Paints’ wood coatings business, the statement added.
This acquisition is expected to be completed by August 31, subject to successful due diligence and approvals from the Reserve Bank of India, the company said.
Kolkata-based Berger Paints is among India's top paint companies, and has a market cap of Rs 24,425 crore. It makes industrial paints and consumer products like metal and wood paints, interior wall coatings, exterior wall coatings and clear coats for wood, according to its website.
The Berger Paints stock closed at Rs 251.55 apiece on the BSE on Tuesday, down 1.64% from its previous close. The firm ended FY2017 with revenues of Rs 4,608 crore and a profit of Rs 446 crore.
In April, Berger Paints had reportedly said it was entering new verticals such as auto-refinish and marine paints by forming joint ventures with Japanese companies.
Other paint companies in India have also been on the lookout for acquisitions. India's largest paints, Asian Paints, acquired Sri Lanka-based Causeway Paints Lanka Pvt. Ltd earlier this year.