Sintex Industries acquires Nief Plastic

30 Oct '07

5 min read

Sintex Industries Ltd acquires Nief Plastic, a leader in plastic injection moldings and thermosets in a cash deal of Euro 30.70m for 100% equity value.

Commenting on the acquisition, Mr. Amit Patel, Managing Director, Sintex Industries Ltd said, “This acquisition represents a continuation of Sintex' aggressive inorganic growth programme for the Plastic division. Through these acquisitions, we have been able to widen our international footprint, having gained access to new markets and technologies.

The acquisition of Nief Plastic has enabled us to establish ourselves as global players in the international plastic component and composite markets. Nief Plastic is a consistently performing high growth company, with a portfolio of established products that have tremendous potential, catering to leading manufacturers in European and African markets.

This transaction would also enable us to gain access to new and credible high quality injection molding and bi-insertion technologies, which could be implemented at lower costs in India as well, enabling us to move up the value chain.” Moreover, the acquisition will provide Sintex an access to Nief's large customer base which will be tapped for marketing Sintex own products.

Added Mr. Gilles Nief, the President and CEO of Nief Plastic SA:
“We are pleased to have Sintex as our strategic partner. This acquisition would be beneficial to Nief Plastic, as it offers us the benefit of low cost manufacturing and the huge potential of the rapidly evolving Indian market.

At the same time we will retain our highly skilled management and workforce along with our R&D team. Nief has grown by diversifying its markets as well as its manufacturing base, moving to lower cost countries, while maintaining the high standards for which Nief is known for.

Our well established presence will offer Sintex direct entry into the European plastic components market with competitive pricing and technical excellence.”

The Board of Directors of Sintex Industries Ltd has approved the acquisition of Nief Plastic. in an cash transaction of Euro 30.70 million (Equity Value) The acquisition is being made through Sintex' French based step down subsidiary, Sintex France SAS.

Sintex will retain the existing management and R&D personnel of the Company. Importantly, Mr. Gilles Nief will continue in his existing capacity as the President and CEO of the Company, lending his experience and knowledge to drive growth going forward. Post the transaction, the Company will continue to retain all of its existing customers.

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