"Prince Pipes" has Acquired the Renowned Bathware Brand "Aquel"

"One of India's largest piping companies, Prince Pipes and Fittings Ltd, has acquired the renowned Bhuj, Gujarat-based brand "Aquel".

Prince Pipes and Fittings Ltd has signed a deal with Klaus Waren Fixtures and NM Shah.

In the financial year, FY 2023-24, Prince Pipes entered the Bathware segment and diversified its business. and now the company has acquired the Bathware brand "Acquel".

👉 Details of the Acquisition:

📢 On March 20, 2024, The Company entered into an asset purchase agreement with Klaus Waren Fixtures Private Limited and Mr. NM Shah for the purchase of certain assets, including (i) the 'Aquel' brand (along with all the relevant intellectual property), (ii) land, (iii) buildings and miscellaneous civil structures, (iv) plant and machinery, (v) dies, tools and fixtures.

📍 The total cost of the acquisition will not exceed INR 55 Crores and will be funded through internal accruals.

📍 The total built-up area is approximately 1.1 lakh square feet, and the land parcel spans 8 acres, which could be used for future expansion.

📍 The acquisition will be conducted in two tranches:

➡ In the first tranche, the acquisition shall constitute the iconic Aquel brand along with the acquisition of molds and dies, on an immediate basis.

➡ In the second tranche, the acquisition of related assets (land parcel, Buildings, machinery, and manufacturing equipment) will be completed by October 15, 2024.

📍 The purpose behind the acquisition is to establish an in-house manufacturing facility, enabling the company to generate greater value in the Bathware Segment and aim to become a prominent player in the Bathware Segment.

What are your views on this?

(Source: BSE Filings)

(Disclaimer: Not an investment advice, just for an educational purpose)

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