Shares of Prince Pipes and Fittings gained 2 per cent in early trading on March 21. The increase was swift following the company’s announcement about the commencement of an asset purchase agreement, which would allow for the acquisition of assets from Klaus Waren Fixtures Private Limited and NM Shah.
An exchange filing indicates that Prince Pipes and Fittings’ board of directors approved the acquisition yesterday, March 20. The agreement provides for the acquisition of the Aquel brand, including all related intellectual property, several land parcels, buildings, machinery, office equipment, and other assets. The total value of the deal is estimated at up to Rs 55 crore.
Acquiring the ‘Aquel’ brand and other associated assets will enable the company to develop an in-house manufacturing unit that will offer its bathware segment more value.
The second covers the following acquisition of land parcels, buildings, machinery, and production equipment located at Klaus Waren’s facility in Bhuj, Gujarat. The first tranche of the deal will be finalized no more than ten days from the date of the execution, with the second phase scheduled for completion before October 15, 2024.
The acquisition is conditional on the voices of various governmental authorities and requires the consent and permission of The Collector Office, Revenue Branch, Bhuj, Gujarat, and any other applicable governmental body concerning the land transfer. As of 10:24 am the shares were trading 2.09 % higher to ₹541.00
