Kolkata-based paints manufacturer Berger Paints is all set to acquire 95.53% stake in STP Limited for an enterprise value of Rs 167.5 crore. Berger Paints' acquisition of STP Limited will supplement the paint major's existing businesses and the two can combine their respective strengths and collaborate in the areas of manufacturing, selling, distribution, procurement and technology.
Explaining the rationale behind the acquisition, K S Dhingra, chairman, Berger Paints India, said, "The business and the expertise of STP Limited will significantly support the company's existing construction chemicals, waterproofing and protective coatings businesses where the two entities can complement each other in various areas such as manufacturing, selling, distribution, procurement, technology, etc., thus resulting in overall benefit to the group." He further added, "Berger looks forward to building on the strengths of STP to provide even better products and services to their esteemed customers through a wider business channel." The acquisition is expected to be completed by the end of November.
STP Limited is an unlisted company which is into a wide range of construction chemicals, concrete admixtures, waterproofing chemicals, flooring compounds, bitumen, coal tar-based products, sealants and adhesives, protective and anti-corrosive coatings, etc. It has six factories, four regional offices and a pan-India network of dealers.