Hindustan Sanitaryware & Industries Ltd (HSIL) on Thursday said it is joining hands with its promoters -- the Somany family -- to jointly acquire Mumbai-based Garden Polymers Private Ltd for Rs 89 crore.

Garden Polymers is engaged in manufacturing of PET bottles, caps and closures and have manufacturing plants at Dharwad (Karnataka) and Selaqui (Uttarakhand). Both the plants will have a combined capacity of 7,500 tonnes per annum. It supplies to customers in liquor, pharmaceuticals and FMCG industry.

HSIL is looking to gain management control of Garden Polymers by the end of July. It will acquire 60 per cent stake in Garden Polymers. "The balance 40 per cent is being bought by the promoter group of HSIL Ltd on the same valuation and terms of the share purchase agreement," the company said.

This acquisition has synergies with company's container glass division which supplies to the same set of customers. This will further strengthen company's position as packaging solution provider and will be value accretive for its shareholders from Day I, it added.

Shares of HSIL today closed at Rs 172.50 on the Bombay Stock Exchange, down 3.52 per cent from its previous close in a weak Mumbai market.

HSIL Ltd, a Kolkata-based company engaged in manufacturing sanitaryware products, had early last year acquired the faucet business unit of Havells India Ltd (which, in turn, is backed by Warburg Pincus and Saif Partners) in an all-cash transaction. HSIL itself is backed by Henderson Asia Pacific Equity Partners.

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