NEW DELHI: Brilloca, a wholly-owned subsidiary of Somany Home Innovation Ltd (SHIL), on Saturday said it will acquire building products manufacturing business of HSIL Ltd in a slump sale for a cash consideration of Rs 630 crore.
Currently engaged in marketing and distribution of building products such as sanitaryware, faucets, plastic pipes and fittings, Brilloca said after the acquisition it will be backward integrated and have better control over the entire value chain, from manufacturing to after-sales.
”We always had forward looking strategies, and changed operating circumstances means refreshed initiatives. Towards that end, this acquisition is a perfect fit from Brilloca’s standpoint for secure, sustained, and accelerated business performance,” SHIL Chairman and Non-Executive Director Sandip Somany said in a statement.
With this initiative, he further said,”We will further consolidate our market standing across segments including sanitaryware, faucets, and plastic pipes and fittings, where we have been demonstrating superior sectoral growth over the last six quarters.” This transaction has been structured to provide both immediate benefits and future flexibility to SHIL to pursue its growth aspirations.
SHIL sells a range of building products and consumer appliances under the brand Hindware.
”As a part of this transaction, the entire operating facilities of HSIL relating to building products i.e. sanitaryware, faucets, plastic pipes, and fittings will be transferred to Brilloca,” the statement said.
EY was appointed as independent valuation advisor for the transaction and AZB was the legal advisor, it added.
Source: Press Trust of India