Asian Paints to buy Ess Ess Bathroom's front-end biz; Q4 net up

Company said acquisition is subject to satisfaction of certain conditions precedents and applicable statutory approvals

Asian Paints today reported 14.45 per cent rise in consolidated net profit to Rs 287.42 crore for the quarter ended March 31, 2014, and also announced acquisition of front-end business of Ess Ess Bathroom Products.

The company had posted a consolidated net profit of Rs 251.11 crore in the year-ago period, the company said in a BSE filing today.

In a separate filing, the company said that it will acquire Ess Ess Bathroom Products Pvt Ltd's entire front-end sales business for an undisclosed sum.

"The company on May 14, 2014, has entered into a binding agreement with Ess Ess Bathroom Products Pvt Ltd and its promoters to acquire its entire front-end sales business including brands, network and sales infrastructure," Asian Paints said.

Asian Paints said the acquisition is subject to satisfaction of certain conditions precedents and applicable statutory approvals.

Ess Ess is a prominent player in the bath and wash business segment in India and has high quality products in this segment, the company said.

On January-March results, the company said its net sales stood at Rs 3,266.44 crore in the quarter, as against Rs 2,690.68 crore in the same period last year.

The results include consolidated financials of Sleek International Pvt Ltd, in which the company had acquired 51 per cent stake on August 8, 2013, it said.

For the full year ended March 31, Asian Paints reported net profit of Rs 1,218.81 crore as against Rs 1,113.88 crore in the previous fiscal.

Net sales during 2013-14 stood at Rs 12,581.64 crore compared with Rs 10,874.35 crore in 2012-13.

Shares of Asian Paints closed 3.3 per cent higher at Rs 556.95 apiece on the BSE.