Kansai Nerolac Paints Ltd will buy 100 percent equity stake in Marpol Private Limited (Marpol) for an aggregate consideration of Rs 36 crores. The entire consideration will be paid in cash and there will be no dilution in equity because of this acquisition. Kansia Nerolac will buy the entire 29,95,200 shares of Marpol.
Marpol, 35 years old company, is one of the leading companies in powder coating business. The company manufactures epoxy polyester, pure polyester, pure epoxy and polyurethane powder. The acquisition will give synergy benefits in raw material and other miscellaneous costs for Kansia Nerolac as the company itself is a significant player in powder coating business.
Commenting on the acquisition, H.M. Bharuka, Vice Chairman and Managing Director, Kansia Nerolac Paints said “Kansai Nerolac is a leader in powder coating market in India. The acquisition of Marpol will further add to the leadership of Kansai Nerolac and help us serve our customers even better. Marpol strategically fits in perfectly with the long term objective of Kansai Nerolac and presents significant opportunities for synergy and mutual benefit.”