C.K. Birla Group company HIL Ltd. (formerly Hyderabad Industries Ltd.) is acquiring German flooring solutions firm Parador.
“The SPA [sale purchase agreement] is getting signed today,” HIL CEO and MD Dhirup Choudhary said. Founded in 1977, Parador’s revenues stood at €140 million and the company employed 550 people.
Earlier, the Hyderabad-based building materials company’s board approved the acquisition of 100% stake — 100,000 shares of face value of €1 each — in Parador Holdings GmbH, Germany, from the existing shareholders.
ADVERTISEMENT
The transaction is to be carried out through a wholly-owned subsidiary proposed to be incorporated in the name and style of HIL International GmbH, Germany, a regulatory filing by HIL Ltd. on Wednesday said.
Parador enterprise value
The enterprise value of Parador Holdings GmbH is €82.8 million (about ₹687.2 crore). HIL board also authorised Mr. Choudhary, who would also be the MD of the wholly-owned subsidiary, to execute the SPA.
ADVERTISEMENT
According to Parador website, the company is into a variety of products for designing floors and walls, including laminate flooring and engineered wood flooring.
During a recent interaction, Mr. Choudhary had mentioned how HIL, besides growing its core business of roofing and adding to its range of UPVC and PVC fittings, was open to inorganic growth through acquisitions.
The target companies, he had said, would be in related areas and the zero-debt balance sheet of the company could easily provide $50-70 million for such a buy.
HIL was also in the process of seeking shareholders’ approval to raise up to ₹1,000 crore through borrowings.