Sintex buys out French plastic products maker Groupe Simonin for $24.2M

Gujarat-based plastic products maker, known for its water tanks, Sintex Industries Ltd has acquired 100 per cent equity stake in France-based Groupe Simonin, a manufacturer of metal and plastic sub-assemblies and technical components, for a cash consideration of €18 million ($24.2 million), according to a stock market disclosure.

The deal is struck through Sintex’s arm Sintex NP SAS France. The acquisition will help the company to expand its products portfolio of metal parts like moulded products and move up the supplier value chain, the statement said.

Also, the deal will help integrate French and Indian plants to offer products and services with bouquet of manufacturing footprint across with wide variety of technologies and capabilities with differential cost basis.

“The acquisition is strategic move towards consolidating our positioning in the European continent. The group value offerings will enhance significantly as metal parts with so critical industrial expertise is booster for our range of offerings,” said Sintex’s managing director Amit Patel.

Founded in 1926, Simonin is a French industrial company and employs 500 people spread over the sites of Beure, Saone and Saint-Vit (within the Besancon area, centre of excellence for micro mechanics), Miniac-Morvan and Mohammedia (Morocco).

In 2013, the company posted a turnover of €48 million, up 10 per cent over 2012. The firm enjoy EBITDA margin of 8 per cent representing around €3.5 million. This means the deal is at a valuation of a little over 5x 2013 EBITDA.

Sintex Industries, formerly known as The Bharat Vijay Mills Ltd, is the dominant player in the plastic and textile segments. The company manufactures a range of building materials and composites at its 15 plants across India. The company has presence across the continents of the US and Europe, apart from India.

On Friday, shares of the company ended the day at Rs 86.45 each, down 3.14 per cent from their previous close on the BSE in a weak Mumbai market.

(Edited by Joby Puthuparampil Johnson)

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