HSIL has entered into a share purchase agreement (SPA) with Garden Polymers and its promoters to acquire 60% stake in that company. The balance 40% is being bought by the promoter group of HSIL on the same valuation and terms of the SPA. Total deal size is Rs 89 crore and consummation of this deal is subject to satisfaction of conditions precedent and other legal compliances.
This acquisition has synergies with company’s container glass division which supplies to the same set of customers. This will further strengthen company’s position as packaging solution provider and will be value accretive for its shareholders from day one.
Garden Polymers is engaged in the business of manufacturing PET bottles, caps and closures, having plants at Dharwad (Karnataka) and Selaqui (Uttarkhand). It is a leading supplier to premier customers in Liquor, Pharma and FMCG Industry.