Mumbai: Acrysil Limited, a quartz and stainless steel kitchen sink maker, said on Tuesday that it has acquired a 74 per cent stake in UK-based kitchen sink distribution company Homestyle Products for Rs 20.50 crore.
Mumbai: Acrysil Limited, a quartz and stainless steel kitchen sink maker, said on Tuesday that it has acquired a 74 per cent stake in UK-based kitchen sink distribution company Homestyle Products for Rs 20.50 crore.
The acquisition agreement, which was signed by Acrysil Ltd, Acrysil UK Ltd and the shareholders of Homestyle Products, provides that Acrysil UK will purchase the remaining 26 per cent of the share capital in Homestyle Products over a period of three years.
The transaction has been funded through internal accruals and debt, a company statement said here.
The company had achieved a turnover of 2.35 million pounds (Rs 23 crore approximately) with EBITDA of 0.54 million pounds (approx Rs 5.3 crore) for the year ended June 2014.
This investment will mark the entry of Acrysil into the premium UK market for kitchen sinks and accessories.
Acrysil currently exports its products to more than 35 countries worldwide including USA, France, Germany, Russia and countries in the Far East and Middle East. In FY14, exports accounted for nearly 74 per cent of Acrysil's turnover.
Apart from kitchen sinks, which include composite quartz granite sinks and stainless steel sinks, Acrysil also deals in kitchen built-in appliances and faucets. Acrysil owns the "CARYSIL" brand which is well established in the Indian and several overseas markets.
Going forward, Acrysil plans to use the Homestyle Products' marketing network to introduce other items from its bouquet of products like kitchen chimneys and cook tops in the UK market. Acrysil will also leverage Homestyle Products' platform to cater to the European market and accelerate growth of its exports to Europe, the release said.
Deloitte Touche Tohmatsu India Pvt Ltd and CMS Cameron McKenna LLP acted as transaction advisor and legal advisor to Acrysil, respectively. Dow Schofield Watts Corporate Finance Ltd and Squire Patton Boggs (UK) LLP acted as transaction advisor and legal advisor respectively to the shareholders of Homestyle Products.
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