Prince Pipes and Fittings acquires Aquel brand and assets from Klaus Waren Fixtures
In a strategic move that signifies its intent to dominate the bathware segment, Prince Pipes and Fittings Limited (PPFL), one of India’s leading integrated piping solutions providers, has announced its acquisition of certain assets from Klaus Waren Fixtures Pvt Ltd, including the prestigious Aquel brand, for a total consideration of Rs. 55 crores. This acquisition, poised to be financed through internal accruals, unfolds in two distinct phases, marking a significant stride in Prince Pipes’ expansion strategy.
The initial phase of the transaction involves the immediate acquisition of the Aquel brand along with moulds and dies. The subsequent phase will see Prince Pipes taking over a comprehensive suite of assets, including a land parcel, buildings, machinery, and manufacturing equipment, along with office furniture and fixtures located at Klaus Waren’s Bhuj, Gujarat plant. This acquisition, pending regulatory approvals, not only enhances Prince Pipes’ product portfolio but also bolsters its manufacturing capabilities and market reach.
Spanning approximately 8 acres with a built-up area of around 1,10,000 sq ft, the acquired premises promise ample space for future expansion, signaling Prince Pipes’ long-term commitment to growth in the sector. The Aquel brand, renowned for its innovative and scientifically engineered bathware products, including faucets and bathroom accessories, enjoys widespread recognition among homeowners, interior designers, architects, and builders, especially in Western, Central, and certain Southern regions of India.
Nihar Chheda, VP Strategy at Prince Pipes, expressed enthusiasm about integrating the Aquel brand into the company’s bathware portfolio, stating, “The acquisition of the Aquel brand represents a strategic and financial fit that will deliver significant synergies and open new market opportunities across our segments.” He highlighted the operational strengths and the advanced manufacturing capabilities of Aquel as key drivers for this acquisition, aiming to leverage these assets to scale the bathware portfolio and strengthen Prince Pipes’ position in the high-growth Indian bathware market.
This acquisition is expected to enable Prince Pipes to tap into an overall addressable market of over Rs. 60,000 crores, encompassing the plumbing and bathing segments within the high-growth real estate sector. By incorporating the Aquel brand, known for its legacy, advanced manufacturing technologies, and robust quality control infrastructure, Prince aims to replicate its success in other segments and become a dominant player in the bathware segment.
The transaction was meticulously advised by leading firms, including Deloitte for tax due diligence, Knight Frank India Pvt. Limited for technical assessment, and Luthra and Luthra Law Offices India for legal due diligence and transaction documentation. This strategic acquisition not only underlines Prince Pipes’ ambition to expand its market presence but also demonstrates its commitment to delivering high-quality, innovative solutions to its customers, reinforcing its status as a leader in the integrated piping and bathware solutions domain.