Mumbai-based adhesives maker Pidilite Industries Ltd has acquired a 70% stake in Tenax India Stone Products Pvt. Ltd (Tenax India), the domestic unit of Italian cement and chemicals manufacturer Tenax SPA.
Pidilite said in a stock-exchange filing that it has acquired the stake in Tenax India for a cash consideration of around Rs 80 crore (around $11.06 million at current exchange rates).
The final figure will depend upon actual working capital and cash at the time of the closing of the transaction.
Following the acquisition, Tenax India shall become a Pidilite subsidiary and Tenax Italy will continue to hold a 30% in the domestic unit.
The Indian manufacturer said the move will help Tenax to fully leverage Pidilite’s sales, marketing and distribution networks in the Indian and South Asian markets.
Bharat Puri, managing director at Pidilite, said the acquisition would help expand the company’s presence in the coatings and surface treatment chemicals market for the marble and stone industry.
“We are excited about the partnership between Pidilite and Tenax spa to consolidate our presence in the fast-growing retail market in India and adjacent SAARC markets,” Tenax SPA group president Igino Bombana said.
Tenax India, incorporated in 2005, is engaged in the sales and distribution of Tenax Italy products for the Indian market. The company is best known for its consumer adhesive brand, ‘Fevicol’, and also manufactures other products such as Fevikwik, M-Seal, and Steelgrip.
The firm has also made many acquisitions and investment moves to strengthen its product portfolio or expand its strategic presence. For example, in December last year, the company participated in a $30 million (around Rs 214 crore) Series D funding round in interior design solutions marketplace HomeLane. Other investors that participated included Evolvence India, FJ Labs, Accel, and Sequoia.
In January 2018, the company secured its board’s approval to acquire 70% stake in floor coating maker CIPY Polyurethanes Pvt. Ltd for Rs 96.4 crore ($15.2 million) in an all-cash deal. It said the move would help it participate in the growth of the resin flooring and floor coatings market.