Pidilite Industries to acquire 70 per cent of Tenax India Stone Products
Pidilite Industries Limited has entered into a definitive agreement with Tenax SPA (Tenax Italy) for acquiring 70 per cent of the share capital of Tenax India Stone Products Pvt Ltd (Tenax India) for cash consideration of approx. Rs 80 crore (depending upon actual working capital and cash at the time of closing).
Post the acquisition, Tenax India will become a subsidiary of Pidilite. This acquisition by Pidilite will enable Tenax India to fully leverage the sales, distribution and marketing capability of Pidilite in India and SAARC markets. Tenax Italy will continue to be a partner (having 30 per cent stake) in Tenax India and provide full support to Tenax India through its technical and market understanding of marble, granite and stones business in India and SAARC markets.
Tenax Italy is the leading manufacturer of adhesives, coating, surface treatment chemicals and abrasives for the marble, granite and stone Industry. Tenax India, incorporated in 2005, is a subsidiary of Tenax Italy, engaged in sales and distribution of Tenax Italy products for the retail market in India.
As per the management of Pidilite Industries, this acquisition will help expand Pidilite’s presence in the fast-growing adhesives, coatings and surface treatment chemicals market for the marble and stone industry and bring world-class technology to India by investing in a manufacturing plant.
On Thursday, the stock of Pidilite closed at Rs 1,555.45. On Friday, it opened at Rs 1,566.90 and later dipped by 2.9 per cent to Rs 1,510.90.