Sintex Plastics Technology Ltd has agreed to sell its wholly owned French unit to a consortium of private equity investors for €155 million ($173.76 million, or Rs 1,232.60 crore at current exchange rates).
The Gujarat-based maker of plastic water tanks said in a stock exchange disclosure that it would sell Sintex NP SAS to Xtech Invest SAS.
Xtech Invest is owned by Siparex, Crédit Agricole Régions Investissement (Carvest), BNP Paribas Developpement, which is a BNP Paribas subsidiary, and AfricInvest, a PE and venture capital firm.
Investec Capital Services (India) Pvt. Ltd and Natixis Partners were the joint financial advisors to the transaction.
The deal, which is subject to regulatory and shareholder approvals, will be completed by the end of October, the filing said.
Sintex Plastics managing director Amit Patel said the sale was part of the group’s efforts to reduce its consolidated debt and to ensure adequate funding for its domestic businesses.
Siparex managing partner for the midmarket business segment Florent Lauzet said Sintex NP had the assets required to consolidate its market share.
Sintex NP SAS was known as Nief Plastic SA before being acquired by the Sintex group in 2007. The company offers clients solutions including thermoplastics, electronics, thermosets and metal engineering.
Primarily known for its water tanks, Sintex Plastics Technology Ltd also manufactures interior products, electricals, prefabs and environmental solutions, among others.
In May 2018, another SPTL subsidiary received a structured credit commitment of Rs 1,250 crore (around $185.7 million then) from a non-banking financial company of global alternative investment firm KKR. At the time, Sintex-BAPL said it would use the money from KKR India Financial Services Ltd and some co-investors to refinance existing debt, and fund its growth in the business-to-consumer (B2C) vertical.