BirlaNu, part of the C K A Birla Group, will acquire Mumbai-based Clean Coats Private Limited for Rs 120 crore, the company said in a statement on Friday. An agreement to this effect has been signed between the parties, with the deal expected to close in the coming weeks.
Avanti Birla, president, BirlaNu, said that the acquisition was a strategic step towards strengthening the company’s portfolio and would give it scale in the construction chemicals business.
“This transaction brings together Clean Coats’ technical expertise, proven formulations and export capability with BirlaNu’s strong brand presence, market reach, institutional relationships and execution scale. Together, we will reinforce our leadership in delivering high-performance solutions for complex infrastructure and industrial customers, while further building scale and differentiation in the retail segment,” she added.
Shares of BirlaNu closed at Rs 1,852.95 apiece, down 0.55 per cent on the BSE on Friday. The announcement was made after market hours.
The acquisition is part of the company’s plan to double its portfolio over the next three years, with an investment outlay of over Rs 1,300 crore, said Akshat Seth, managing director and chief executive officer, BirlaNu. The home and building products and services company offers products across pipes, construction chemicals, putty, roofs, walls and floors.
“We are strengthening BirlaNu’s position as a leading, end-to-end provider of building products and solutions, offering innovative and sustainable products that address evolving consumer needs,” he said, adding that Clean Coats will enable the company to reach a broader spectrum of customers across projects and retail channels, with products across advanced surface technologies, protection, adhesives, admixtures and waterproofing — under one platform.
“For our shareholders, this transaction offers significant long-term value creation through deeper participation in this fast-growing, high-value segment,” he added.
Clean Coats has a comprehensive portfolio of epoxy and polyurethane coatings, anti-corrosion linings, flooring systems, waterproofing and food-grade protective coatings, catering to industrial, oil and gas, and water management projects across India, and exports to more than 27 countries globally.
