Hindustan Sanitaryware and Industries Ltd has acquired Mumbai-based PET-bottle maker Garden Polymer for Rs 89 crore in an all-cash deal.
With this acquisition, the company plans to cater to the total packaging solutions business.
HSIL said it has signed a share purchase agreement to buy 60 per cent stake in Garden Polymers. Separately, HSIL's promoter group will buy the balance 40 per cent stake in Garden Polymers.
Garden Polymers supplies PET bottles, caps and closures to liquor, pharmaceutical and fast moving capital goods industries, and has a plant each in Dharwar in Karnataka and Selaqui in Uttarakhand.
Both the plants have a combined capacity of 7,500 tonnes per annum.
Mr Sandip Somany, Joint Manging Director, HSIL, told Business Line the acquisition will give a shot-in-the-arm to HSIL's glass bottle business AGI Glasspack.
“We have been in the glass bottle manufacturing business. With this acquisition, we are looking at offering packaging solutions in both rigid and plastic,” he added.
Mr Somany said the Garden Polymers customers were identical with AGI's. He said Garden Polymers had reported a turnover of Rs 104 crore with a net profit of Rs 10 crore for the year ended March 31, 2011. “We are confident the company will contribute to profits as soon as it is integrated,” he added.
Shares of HSIL ended down 3.52 per cent at Rs 172.80 on Bombay Stock Exchange.