Hyderabad

HIL completes acquisition of German flooring firm

Building materials company HIL Ltd (formerly Hyderabad Industries Ltd) said it has completed the acquisition of Germany-based Parador Holdings GmbH.

With this, the process of integration of operations of flooring solutions firm Parador “with a view to benefit from joint synergies,” has also been kick-started, a release from the Hyderabad-headquartered firm of the CK Birla Group on Monday said.

HIL’s wholly owned subsidiary HIL International GMBH will own 100% equity capital of Parador Holdings GmbH.

Last month, HIL had announced it was acquiring the flooring solutions firm and as part of that going to acquire 100% stake in Parador Holdings GmbH.

The enterprise value of Parador Holdings GmbH was pegged at euro 82.8 million (about ₹687.2 crore).

The release on Monday said the all-cash consideration is being funded by HIL through a combination of euro debt, rupee debt and internal accruals. Noting that a formal event in Germany marked the completion of the transaction, the release said the transaction was completed with shareholders of Parador Holdings GmbH by HIL Managing Director and CEO Dhirup Roy Choudhary, who is also Managing Director of HIL International GmbH.

The combined entity, which has got anti-trust approvals from regulators in Germany and other key jurisdictions, would be strengthening presence in key markets while leveraging leadership to drive forays in newer geographies.

The existing capacity at Parador offered room for incremental growth without need for immediate capex, the release said.

“We look forward to a very successful association with Parador to create a stronger combined entity,” said the Group Chairman CK Birla.

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Printable version | Feb 27, 2021 6:23:00 PM | https://www.thehindu.com/news/cities/Hyderabad/hil-completes-acquisition-of-german-flooring-firm/article24795233.ece

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