Imerys SA, a French company that processes industrial minerals, has agreed to acquire the thermal insulation business of Hyderabad Industries Ltd (HIL), the building materials arm of CK Birla Group.
Imerys is buying the business, which operates under the HYSIL brand name, through unit Calderys India Refractories Ltd for Rs 80 crore ($11.26 million at current exchange rates), HIL said in a statement.
HIL said the sale was in line with its long-term strategic roadmap of being a large building- and infrastructure-focused solutions company.
Calderys said the acquisition would help extend its product offerings. “It is a natural strategic extension of our existing refractory product portfolio,” Imerys India chairman and Southwest Asia vice-president Ish Mohan Garg said.
The deal is expected to be closed within three months, subject to relevant conditions.
Investment bank Singhi Advisors was the exclusive adviser to Imerys India. Centrum Capital advised HIL.
Calderys India is part of Imerys-owned Calderys Group, which makes heat-resistant monolithic refractory products. Imerys has a presence in over 30 countries and caters to the cement, aluminum, fertiliser, petrochemical and power sectors.
The HYSIL business includes the manufacturing, sales, marketing, distribution and export of calcium silicate-based insulation products in the form of pipes, blocks and other shapes. HIL was set up in 1946 and offers walling and flooring solutions and polymer solutions for pipes and putty. Apart from HYSIL, HIL owns other brands such as Charminar, Birla Aerocon, Charminar Fortune, Birla HIL and Parador.
The sale of the HIL unit is the second strategic move by a CK Birla Group company in as many days. On Thursday, National Engineering Industries Ltd said it would buy two firms – Slovakia-based Kinex Bearings and industrial component manufacturer Abok Spring Pvt. Ltd – to expand its product portfolio and increase its geographical presence.