JK Cement's subsidiary to acquire 60% stake in Acro Paints for Rs 153 crore

23 Dec 2022 , 09:38 AM

JK Cements Limited informed that its wholly-owned subsidiary has entered into a share purchase agreement with Acro Paints Ltd. and its shareholders for acquisition of 60% controlling stake in the company.

Acro Paints is a leading manufacturer of architectural and high-performance paints and coatings in Northern India. This acquisition accelerates JK Cement’s entry into the paints business, expands its product offerings, and potentially expands into new markets.

The acquisition of Acro Paints brings strong manufacturing capabilities and comprehensive product formulations, which will be scaled up to meet JK Paints & Coatings’ business plan objectives over the next few years.

JK Cement is India’s leading manufacturer of wall putty, and this segment overlaps significantly with the Paint Industry. Acquiring a financially strong company with zero debt and healthy margins, such as Acro, is a strategic move for JK Cement to leverage the strengths of its putty distribution network and capitalize on the synergies created.

Following this development, JK Cement was trading 1.74% lower at Rs 2,986.45 apiece, against previous close of Rs 3,039.45 on NSE.

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