Steel pipe maker APL Apollo Tubes today said it has acquired Maharashtra-based Lloyds Line Pipes for Rs 40 crore in an all cash deal against the earlier announced deal, which included part payment in shares as well.
"An all cash deal helped us to expedite the acquisition process. With the completion of the acquisition, we are looking at faster integration of the new facility at Murbad (Maharashtra) and a stronger foothold in the western markets," APL Apollo Tubes CMD Sanjay Gupta said in a statement here.
In September, the company, formerly known as Bihar Tubes, had announced that it will acquire Lloyds Line Pipes for Rs 40 crore in a part cash-part equity deal.
"The acquisition has been completed in an all cash deal instead of part cash-part equity deal announced earlier," it added.
The acquisition will help the company increase the annual production capacity to 4.9 lakh tonnes from the existing 4 lakh tonnes. "At the same time, it will reduce lead time for company's existing customers in the western region," the statement said.
"Being proximate to ports, these facilities would not only ensure savings in logistics cost, but would also enable higher exports," it added.
To expand its footprint in western and southern India, the company had earlier entered into a Rs 7 crore share deal with a distributor Shankara Pipes.
