Leading Indian plastic products makers Sintex Industries (SIL) has acquired an 81% stake in US-based Wausaukee Composites (WCI)- a leading manufacturer of highly-engineered composite components, in a US$20.5 mln all-cash deal. The balance share is expected to be acquired subsequently, based on an earn-out approach.
WIC provides composite plastic and Fiberglas components to more than 50 original equipment manufacturers across the world. Wausaukee's revenues stood at US$23 mln as on December 2006, debts were nil and the company continues to consistently show good track record with a profitability margin of 24%.
The acquisition will help the company in building a global presence in the international auto and electrical plastic accessories market and add to the company's consolidated topline as well as bottomline.
The Ahmedabad-based company's plastic division is a leader in its range of products like water storage tanks, prefabricated structure, BT shelters for telecommunications, monolithic construction for housing of weaker sections and electrical accessories made out of Composites. The growth drivers of Sintex currently are composites and prefabricated structures. The acquisition of WCI was to utilise the technology available with the WCI to make global presence.