New Delhi, Jan 5 (PTI) Chemical firm Pidilite Industries will acquire majority stake in CIPY Polyurethanes for Rs 96.4 crore, enabling the company to participate in the growth of the resin flooring and floor coatings market.
Pidilite said in a statement that its board has approved the acquisition of 70 per cent stake in equity shares of CIPY Polyurethanes Pvt Ltd, subject to completion of certain conditions.
CIPY is engaged in the business of manufacture and sale of floor coatings using polyurethanes, epoxies, polyurea and polyaspartic polymers.
"The consideration will be in cash being an amount of Rs 96.40 crore in aggregate payable to the existing shareholders of CIPY for the purchase of the portion of shares held by them in CIPY," the statement said.
This acquisition would help the company to participate in the growth of the resin flooring and floor coatings market.
The turnover of CIPY was Rs 110.40 crore in 2016-17.
Cipy, Managing Director of CIPY Polyurethanes, said this partnership with Pidilite will make us stronger and accelerate growth in the floor coating category.
Bharat Puri, Managing Director of Pidilite Industries, said the acquisition of majority stake in CIPY will enable Pidilite to expand its presence in the fast growing resin flooring and floor coating category.
Pidilite Industries is a leading manufacturer of adhesives and sealants, construction chemicals, craftsmen products, DIY (Do-it-yourself) products and polymer emulsions in India.
Its brands include Fevicol, MSeal, Fevikwik, Roff, Dr. Fixit, Fevicryl, Motomax and Hobby Ideas. PTI MJH SBT