HIL Ltd, part of the diversified CK Birla Group, has agreed to acquire German building materials maker Parador Holding GmbH in a bid to gain entry into the European market and expand its product portfolio.
The acquisition will also help HIL enter Southeast Asia and the US, the Hyderabad-based company said in a stock-exchange filing on Wednesday.
The deal has been struck at an enterprise value of 82.8 million, or Rs 687.2 crore ($100 million at current exchange rates), for Parador. HIL will pay a cash consideration of 72.3 million (Rs 600 crore) for Parador. This comprises 53 million for equity shares and the remaining for repayment of certain loans.
Paradors current shareholders include German private equity firm NORD Holding, which had bought into the company in 2016. Parador chairman Lubert Winnecken and managing director Hendrik Vob also own a stake in the company.
HIL, formerly Hyderabad Industries Ltd, was set up in 1946. It makes building materials and roofing products at its 24 factories, according to its website.
Parador was founded in 1977 and has one factory each in Germany and Austria that make resilient flooring, laminate and engineered wood floor, wall and ceiling panels.
Its net revenue rose to 142.2 million in 2017 from 134.8 million the year before. Its net worth was 10.3 million at the end of 2017.
HIL expects to complete the transaction in two months time. The buyout will need antitrust approvals in certain jurisdictions, the filing said.