Prince Pipes & Fittings jumped 2.17% to Rs 541.35 after the company has entered into asset purchase agreement with Klaus Waren Fixtures and NM Shah for the purchase of certain assets in two tranches.
Assets include Aquel brand (along with all the relevant intellectual property), land, buildings and miscellaneous civil structures, plant and machinery, dies, tools and fixtures, and other office equipment.The Aquel brand has established itself as a key player in Western, Central and certain parts of South India, with its wide range of products. It has captured the attention of homeowners, interior designers, architects and builders. There are currently 9 ranges and 250 SKUs being produced under the Aquel brand.
The acquisition of the Aquel brand (including all its intellectual property rights) along with other assets will help the company in setting up an in-house manufacturing facility inter alia resulting in building greater value in bathware segment. This growth opportunity is aligned with the strategic directions of the company. Total cost of acquisition is Rs 55 crore, funded through internal accruals.
The first phase shall constitute the acquisition of the iconic Aquel brand along with the acquisition of moulds and dies, on an immediate basis and the second phase will be in relation to the acquisition of the assets comprising of land parcel, buildings, machinery and manufacturing equipment, office furniture and fixtures situated at Klaus Warens plant in Bhuj, Gujarat. The acquisition of the relevant assets is to be completed by 15 October 2024.
The transaction shall be consummated subject to the receipt of regulatory approvals. The total built up area is around 1,10,000 sq ft whereas the land parcel area spans approximately 8 acres, which could be used for future expansion.
Nihar Chheda, VP Strategy, Prince Pipes, said, We are excited to have the acclaimed Aquel brand as a part of Bathware portfolio and our products henceforth will be branded and retailed under the brand- Aquel by Prince. The transaction is a strategic and financial fit that will bring significant synergies and market opportunities across our segments. It will catapult the performance of the Bathware segment giving us direct access to an iconic brand along with state-of-the-art facility and creating a larger distribution channel in major markets across India.
Prince Pipes and Fittings is one of India's largest integrated piping solutions & multi polymer manufacturers. The company has been engaged in the manufacturing of polymer piping solutions in four types of polymers - CPVC, UPVC, HDPE, PPR.
The company reported net profit of Rs 70.63 crore in Q2 FY24 as against a net loss of Rs 24.11 crore recorded in Q2FY23. Revenue from operations rose 3.13% to Rs 656.45 crore in Q2 FY24 as against Rs 636.48 crore recorded in Q2 FY23.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content
