Astral Poly Technik Ltd has acquired 76% stake in Resinova Chemie Ltd

Ahmedabad-based leading manufacturer of CPVC pipes and fittings Astral Poly Technik Ltd has acquired 76% stake in epoxy adhesives player Resinova Chemie Ltd for Rs  212.8 crore. The transaction values Resinova at an enterprise valuation of Rs. 289 crore.

One of the leading players in epoxy adhesives sector in India, Resinova is engaged in manufacturing and marketing of a highly diversified range of adhesives and sealants in chemistries based on epoxy adhesives, acrylics, UV cure, and cyanoacrylates, among others, Resinova's products have varied applications including automobile, construction, chemicals, engineering, industrial, furniture, sanitary and household sectors.

The acquisition will synergise with Astral's existing pipes and fittings businesses by deepening and widening its product offerings.

"Astral has established itself as a strong participant in the CPVC pipes and fittings sector and has gained recognition as a progressive player in the other related sectors. We see the adhesives business as the logical next step in building the Astral franchise. In high growth Indian adhesive market, the Resinova acquisition provides a strong platform which is highly complementary to Astral's strengths. We see tremendous growth opportunities and are excited with the prospects to create lasting value for our shareholders," said Sandeep Engineer, Managing Director of Astral Poly Technik Ltd.

Earlier in August 2014, Astral acquired 80% stake in the US based Seal It Services Ltd ('Seal-It'), which is engaged in manufacturing and selling a comprehensive range of sealants, adhesives, water proofing, cleaning products, tape & paints, and PVA, used mainly in construction sector.

Vijay Parikh, Managing Director of Resinova Chemi Ltd said, "This strategic move between two fast growing companies in synergistic sectors has exceptional potential to develop the adhesive market in India. Combined with Astral's presence in international markets, thrust will be on using technical strength and distribution network of both companies to harness the potential of this business.