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Finance & Markets

Pidilite buys Araldite maker’s India division

Pidilite Industries Limited has signed a definitive agreement with the US-based Huntsman Group to acquire 100% stake in Huntsman Advanced Materials Solutions Private Limited (HAMSPL). The deal is for approx. Rs 2100 crores ( $285 million), excluding customary working capital and other adjustments. The Huntsman release states that it will receive approximately $257 million in cash at closing and up to approximately $28 million of additional cash under an earnout within 18 months if the business achieves sales revenue in-line with 2019.

The Do-It-Yourself (DIY) consumer adhesives business is a part of Huntsman’s Advanced Materials division. HAMSPL manufactures and sells Adhesives, Sealants and other products under well-known brands such as Araldite, Araldite Karpenter and Araseal in India. In the calendar year 2019, business revenue was approximately INR 400 Cr.  The deal also includes the acquisition of trademark licence for the Middle East, Africa and ASEAN countries.

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Explaining the reason for the sale Peter Huntsman, Chairman, President and CEO said that Huntsman will benefit from Pidilit’s sales network. ” We have taken this business and built it from almost nothing to be a market leader in India.  To take it to the next level of size and value, we simply do not have the footprint in India to do so,” writes Peter Huntsman in his company’s official release.

The deal is subject to certain preconditions being met prior to the closing of the transaction and is expected to close within the coming week.  

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Pidilite buys Araldite maker's India division

Pidilite Industries Limited is a manufacturer of adhesives and sealants, construction chemicals, craftsmen products, DIY (Do-It-Yourself) products and polymer emulsions in India. It has iconic brands under its product portfolio including Favicol, MSeal, Fevikwik, Fevistik, Roff, Dr.Fixit, Fevicryl, Motomax and Hobby Ideas.

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Frontier India News Network

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