JK Paints and Coatings, a wholly-owned subsidiary of JK Cement, has come into a share purchase agreement with Acro Paints and its shareholders to own a 60% stake in the company, it said in a BSE filing.
The company plans to invest an amount of Rs 153 crore in the first tranche and remaining 40% will be acquired in the period of 1 year as per the definitive agreement entered between the parties.
Current promoters of Acro Paints, Charanjeet Gaind and Ashok Gaind will continue to be part of the company and on the board for the next one year.
Managing director of JK Cement, Raghav Singhania said that they are committed to ensuring the successful integration of our businesses and are excited to bring our combined experience to the table.
Acro Paints manufactures architectural and high-performance paints and coatings in Northern India. While JK Cement, is a manufacturer of wall putty and this segment has a significant overlap with the paint industry.
JK Cement comprising 1,00,000 dealers,75,000 influencers, and 1,500 distributors bolstered the Pan-India distribution network, Acro’s distribution network will enable the company to reach wider market-ready accessibility to customers.
Madhavkrishna Singhania, Deputy Managing Director, and CEO of JK Cement Ltd. added to the announcement that they have a focused plan to gradually deepen their presence in the strong markets over the upcoming few years and have identified specific geographic, product, and channel niches where they would dominate. They will leverage the strengths of both their brands as they expand their presence in the paint industry. They believed Acro to be synergistic with their portfolio and will help them comprehensively address the rapidly growing paint and putty cement industry.
The managing Director of Acro Paints Ltd. also said that he is delighted with their association with JK Cement and its dynamic management team, which is the epitome of humility and passion, driving the next era of growth.
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