Kansai Nerolac Paints Ltd
(KNPL), India’s third largest listed paints company, in a statement to the stock exchanges said that it will acquire 100% stake in Marpol Pvt Ltd (Marpol).
KNPL informed the stock exchanges that it has entered into a share purchase agreement to acquire 100% stake in Marpol Pvt Ltd for an aggregate consideration of Rs36cr before adjustments due to legal and financial due diligence. The all-cash deal is expected to be completed by May 31, 2018. KNPL will acquire 29,95,200 equity shares of face value 10 each.
Marpol is a Goa based paints company engaged in the business of powder coating. It manufactures products such as epoxy polyster, pure polyster, pure epoxy, and polyurethane powder. As of FY16-17, the company had a turnover of Rs63cr.
KNPL is a significant player in the powder coating business and the acquisition will lead to synergy benefits and cost benefits for the
KNPL derives 56% revenues from decorative paints, 43% from industrial paints and 1% from exports. KNPL has presence in decorative paint market of Nepal. Recently, it has entered into JV with Maharaja Group to cater to Sri Lankan paints market. Currently, KNPL has capacity of 364,000MT across four plants in India and has the third-largest distribution network comprising 15,000 dealers.
KNPL traded at Rs.503.70, up Rs.4.50 or 0.9% from the close of Rs.499.20 on BSE.