|Sintex Industries will acquire the automotive plastics division of Bright Brothers for Rs 149 crore.|
According to a release issued by Sintex to the BSE today, the deal will be executed through its downstream subsidiary Bright Auto Plastic.
"Sintex will acquire the company in the form of a slump sale purchase for approximately Rs 149 crore. The slump sale includes purchase of all five strategically located automotive component manufacturing plants in Chennai, Sohna, Pune, Pithampur and Nasik," the release said.
Amit Patel, managing director, Sintex, said: "The acquisition represents a significant step towards us establishing a strong presence in the domestic plastic auto component market. Bright Brothers is a consistently performing, high growth company with a portfolio of established products that have tremendous potential. The acquisition, which is earnings accretive, will add strongly to Sintex's consolidated topline as well as bottomline due to common synergies. It would also enable us to gain access to new and credible customers in the automotive space, and would qualify us as a reputed manufacturer and supplier of automotive plastics in addition to our existing non-auto plastic components product suite."
The transaction follows the recent acquisition of Wausaukee Composites Inc, USA - a manufacturer of highly engineered composite plastic components - for $20.5 million, the release added.