Last Updated : Saturday, November 2, 2019 19:47:04

BERGER PAINTS acquired 96% stake in STP Ltd for 1.68 billion rupees

KOLKATA | MUMBAI | AHMEDABAD-GANDHINAGAR | RAJKOT – In a press-release submitted to the Indian Stock Exchanges, Kolkata headquartered Berger Paints (I) Ltd said of having acquired 95.53% stake in STP Ltd for an enterprise valuation of 1.68 billion (~167.5 crore) rupees, of which the Company has till now acquired 91.94% of the paid-up equity share capital and the balance 3.59% of the paid-up equity share capital is intended to be acquired shortly, as per the Share Purchase Agreement entered between the parties.

In the company press-release as submitted to the Indian Bourses, titled – “Berger Acquires STP Limited”, it further read that, Berger Paints India Limited (“Berger”) has till now acquired 91. 94% of the paid-up equity share capital of ST P LTD (“STP”) from its existing shareholders.

Berger intends to acquire another 3.59% shortly, as per the Share Purchase Agreement between the parties, thus acquiring a total of 95.53%, at an enterprise value of INR 167.5 crores, subject to usual closing adjustments on account of net working capital, net debt and adjustments on account of indemnities.

STP has thus become a subsidiary of Berger with effect from 1st November, 2019.

STP carries out businesses of construction chemicals, concrete admixtures, waterproofing chemicals, flooring compounds, bitumen and coal tar based products, sealants and adhesives, protective and anti-corrosive coatings, etc., which are specially formulated and have strong brand image.

The total revenue of STP in the year 2018-2019 was INR 174.02 crores.

K S Dhingra, Chairman, Berger Paints (I) Ltd said: “The business and the expertise of STP Ltd., will significantly support the Company’s  existing construction chemicals, waterproofing and protective coatings businesses where the two entities can complement each other in various areas such as manufacturing, selling, distribution, procurement, technology, etc., thus resulting in overall benefit to the Group. Berger looks forward to building on the strengths of STP to provide even better products and services to their esteemed customers through a wider business channel.”

Financial advisors to the transaction are Deloitte Touche Tohmatsu India LLP for Berger and Ernst & Young LLP for shareholders of STP, whereas the legal advisors to the transaction are Khaitan & Co. LLP, for Berger and PDS Legal for shareholders of STP.


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