HLE Glascoat acquires majority stake in Kinam Engineering for Rs 80cr

HLE Glascoat, a process equipment manufacturing front-runner, today finalized the acquisition of a 35.56% stake in Kinam Engineering Industries for a consideration of Rs. 79.97 crores. This acquisition is part of HLE Glascoat’s strategic move to bolster its standing in the niche process equipment market.

Kinam Engineering Industries to Retain Distinct Identity

In a collaborative agreement between the two firms, Kinam Engineering Industries will retain its independent brand identity. Even after the acquisition, Kinam Engineering Industries will persist as a standalone business entity. Recognized for its innovative designs and manufacturing capabilities in various heat exchangers and process equipment, Kinam Engineering Industries serves an impressive client roster spanning the chemical, pharmaceutical, and textile sectors, among others. Their international footprint includes exports to Germany, the Netherlands, Malaysia, and more.

Phased Acquisition & Future Plans

The initial phase involves HLE Glascoat procuring a direct 35.56% interest from Kinam Engineering Industries partners, Kirit Mehta and Mehul Mehta. A subsequent 34.44% stake acquisition is planned through the amalgamation of Kinam Enterprises Private Limited into HLE Glascoat. This consolidation awaits clearance from the HLE Glascoat board and regulatory bodies. The unison aims to pool the rich expertise of Kinam Engineering Industries and the operational synergies of both entities.

Industry Leaders Share Insights

Himanshu Patel, MD of HLE Glascoat, shared, “We are excited to announce this significant development… It is a historic moment for us looking at the immense possibilities that lie ahead for both brands.”

Echoing similar sentiments, Kirit Mehta, Partner of Kinam Engineering Industries, stated, “The unification of Kinam and HLE Glascoat is exciting news for our customers and employees.” Mehul Mehta emphasized the mutual benefits and remarked on the transition to a larger-scale engineering entity.

The inaugural phase of the acquisition is projected to conclude by the second quarter of FY2024.

Transaction Advisors

HLE Glascoat enlisted Innergize Solutions as the exclusive Strategic Advisor and sought legal counsel from Khaitan & Co for this transaction.