APL Apollo Tubes today completed the acquisition of Lloyds Line Pipes, a Maharashtra-based manufacturer of steel tubes and pipes. The acquisition, valued at Rs 40 crore, has been completed in an all cash deal instead of part cash-part equity, as announced earlier.
APL says that the facilities of Lloyds Line Pipes are API certified and can manufacture up to 14 inch tubes. Located close to ports, these facilities would not only ensure savings in logistics cost, but would also enable higher exports.
With this acquisition APL Apollo will strengthen its capacity from existing 400,000 tonnes per annum to 490,000 tpa. At the same time, it will reduce lead time for company’s existing customers in the western region.
"An all cash deal helped us to expedite the acquisition process. With the acquisition completed, we are looking at faster integration of the new facility at Murbad and a stronger foothold in the western markets," said Sanjay Gupta, CMD, APL Apollo Tubes.