Astral Poly Technik Ltd. acquires Rex Polyextrusion Pvt Ltd.
Myequity news service | Date: 10-07-2018 10:45:00 IST
Astral Poly Technik Ltd.(www.astralpipes.com), leaders in CPVC pipes and fittings industry in India, today has acquired REX POLYEXTRUSION PVT LTD ("REX") for Rs.147.50 Cr. (Equity Value-100%). 51% will be paid in Cash & 49% will be by exchange of Astral Poly Technik Ltd. Shares under the scheme of amalgamation.
Rex Polyextrusion Pvt Ltd. (www.rexpoly.co.in) has been making its presence felt in the piping industry for the past three decades. The company has played a key role in introduction of a variety of new products in the Indian Piping Industry with the sole motive of encouraging the application of superior user friendly and economic solutions. The manufacturing systems installed at Rex are advanced and are based on state-of- the-art German equipment and extrusion process technology. The specific emphasis on quality production in combination with technical advancements, Rex offers a formidable range of products suitable for the Indian piping needs especially in the Infrastructure space.
The company in its past 3 decades has been involved in the introduction and manufacture of a range of products such as:
- PVC Suction and Discharge Hoses.
- Single Wall Corrugated Pipes for Sub-Surface Drainage in farm & sports fields.
- Double Walled Corrugated Piping Systems for buried underground Communication I Power Cable Management I Solar Farms.
- Plastic Sheathing Ducts for Post Tensioning for Flyovers and Bridges.
- Double Walled Corrugated Structured Wall Non-Pressured Underground Sewerage Drainage Applications.
- Polyolefin cable Channels for underground laying of Signal and Communication lines on railway routes and in power plants and industrial installation.
- Package Sewage Treatment Plants for effective management of sewage generated from communities.
- Flat Belt type sub-surface drainage systems for agricultural, road drainage, foundation drainage and tunnel drainage application.
As a part of Astral's strategy for growth & its constant desire to grow shareholders Value, Astral has successfully consummated three acquisitions and demonstrated its success in the said strategy. This will be the fourth acquisition of a fast-growing profitable company which fits to the Astral Slogan "Where innovation flows". REX is a company in which its founding promotor believes in launching innovative products in the piping sector and related areas of infrastructure products. This acquisition is the perfect fit for both companies as Astral is a strong player in the Retail (30000 Plus dealers) & Project Business (750 Plus Distributors) and REX is equally strong in their respective product range & having products in pipeline which can leverage the Astral Network.
Commenting on the transaction, Mr. Sandeep Engineer, Managing Director, Astral, said " Astral started its journey with CPVC pipe and later added the other categories of pipes and today ASTRAL is a very well known & a strong brand image in Indian Piping Market. Astral then entered in Adhesive market by acquiring 3 companies in Adhesive and demonstrated a good growth in the sector having top line of more than Rs.500 Cr. And to continue its growth strategy & value creation for its stake holders Astral is entering through The REX acquisition into Infrastructure & other related piping business which has an enormous growth opportunity in Indian building material & infrastructure Market. I am confident that with this acquisition ASTRAL will be a very strong brand in Infrastructure & Building material space.
Commenting on the transaction, Mr. Chadrashekhar Dandekar, Director & promotor of Rex Polyextrusion Pvt. ltd. It’s really a very strategic move between two very strong & fast-growing piping companies in their respective areas of plumbing pipes & infrastructure & other pipes. I see a very bright future for REX & ASTRAL combination. The vast distribution Network of Astral Pipes will be the perfect fit for the REX's current & future products range to capture the potential of fast moving Indian Building Material & Infrastructure Market. We will jointly achieve the new milestones in the days to come."
Ambit Pvt. Ltd., was the exclusive financial advisor, KPMG was the financial & Tax due diligence advisor and Khaitan & Co. was the legal advisor to Astral on the above transaction.
Astral is trading at Rs. 1,017.95 up 1.6%.