HLE Glascoat to acquire global business of German firm Thaletec for €12m
HLE Glascoat, an Indian process equipment manufacturer, has agreed to acquire the global business of Germany-based Thaletec, a manufacturer of specialized glass lined process equipment/ reactors, for a sum of €12 million in an all-cash deal.
The acquisition also includes the German firm’s subsidiary — Thaletec USA.
HLE Glascoat said that the acquisition is a part of its efforts to further consolidate its position in the overseas markets with innovative technology. The company manufactures process equipment for the chemical and pharmaceutical industries.
The acquisition is also said to be in line with HLE Glascoat’s strategy to grow its presence globally and strengthen its position in manufacturing innovative and specialized process equipment, and customized solutions and systems.
Himanshu Patel — Chairman and MD of HLE Glascoat said: “We are thrilled to announce this very significant development which meets all the criteria set out by our Group in terms of profitability and growth potential. While this transaction creates excellent value for our shareholders and allows us to accelerate our expansion plans, Thaletec also shares our existing vision, values, and strategic thinking.
“It is a historic moment for us looking at the immense possibilities that lie ahead for both brands to serve our customers with innovative and world class products as per their fast-evolving tastes and requirements.”
As per the terms of the deal, Thaletec will continue to maintain its distinct brand identity and continue as a separate business entity after the acquisition.
HLE Glascoat said that as Thaletec is also into similar and synergistic lines of business and operations, it expects incremental enhancements in the operations of the two companies.
Furthermore, the Indian process equipment manufacturer said that the acquisition will boost efficiencies and combine similar business interests for the two entities to create operational synergies, streamlining, and optimization of the businesses.
Dr. Jürgen Reinemuth — MD of Thaletec said: “Thaletec has established itself in the European, Asian and North American markets as a reputed and experienced customized glass lined equipment manufacturer and has built a solid foundation for the next phase of its growth.
“The unification of Thaletec and HLE Glascoat is very exciting news for our customers and employees. We, at Thaletec, strongly believe that the two organizations will benefit from complementary business philosophies, culture, resources and technology.”
The deal, which is certain closing conditions and regulatory approvals, is likely to close by the end of the year.