Hindustan Sanitaryware & Industries Ltd (HSIL) today said it along with its promoters will fully acquire Mumbai-based Garden Polymers Private Ltd for a consideration of Rs 89 crore.
The company has entered into a share purchase agreement with Garden Polymers and its promoters to acquire 60% stake in that company, HSIL said.
"The balance 40% is being bought by the promoter group of HSIL Ltd on the same valuation and terms of the share purchase agreement," it added.
The total deal size is Rs 89 crore, the company said.
"Its a synergistic acquisition for us. It widens our portfolio of products for our customers," HSIL Joint Managing Director Sandip Somany told PTI.
This will further strengthen the company's position as packaging solution provider and will be value accretive for its shareholders from day one, he added.
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 have a combined capacity of 7,500 tonnes per annum," Somany said.
The company is looking to gain management control of Garden Polymers by the end of July.
Shares of HSIL today closed at Rs 172.50 on the Bombay Stock Exchange, down 3.52% from its previous close.
