Don’t miss the latest developments in business and finance.

Uniply acquires Vector Projects for Rs 64 crore

Image
Press Trust of India Mumbai
Last Updated : Aug 31 2016 | 7:57 PM IST
Uniply Industries Ltd, a leading plywood and laminate manufacturer, today announced the acquisition of 100 per cent equity in Vector Projects for a consideration of Rs 64.12 crore in a cash and share deal.
This consideration will be paid out as Rs 23.13 crore in stock swap with shares of Uniply, and Rs 40.99 crore through cash payout that will be funded by the promoters of Uniply and other participants via private placement, a company statement here said.
"This is a marquee transaction for Uniply, in line with our stated strategy to move from a commodity to a solutions-based business. The new entity provides us with an exciting and scalable platform, and I'm confident this deliver immense value to all stakeholders over time," Uniply Chairman and Managing Director Keshav Kantamneni said.
Vector founder Umesh Rao will head the business as an independent subsidiary, supported by Uniply's pan-India architect and dealer network, Kantamneni said.
This is a first-of-its-kind deal in India, where a renowned building materials manufacturer is forward integrating into end-to-end building solutions.
Vector was started over 15 years ago and is now one of India's largest end-to-end architectural design and interior fit out companies, having clocked over Rs 210 crore revenues in the last financial year. It provides a turnkey solution comprising design, execution and services.
Speaking on the transaction, Umesh Rao, CEO of Vector, said, "The transaction is a win-win as Vector will continue to maintain independent identity, while being fully backward integrated and supported by a larger financial and marketing team.

Also Read

First Published: Aug 31 2016 | 7:57 PM IST

Next Story