After two months of negotiation, the Braj Binani Group has made its first overseas acquisition by acquiring 3B, a Belgian fibreglass company, for a deal size of Rs1,785 crore.
The group has picked up 100% equity interest in Battice-headquartered 3B from Platinum Equity, a Belgium-based private equity player.
The market conditions notwithstanding, the acquisition is seen giving it an entry into the niche fibreglass market.
3B is one of Europe’s leading manufacturers of fibreglass for reinforcement of thermoplastics and thermoset polymer applications, and is a preferred supplier to global leaders in industries including automotive and wind energy.
Fibreglass finds use in automotive, wind energy and other such industries which are fast shifting to alternative materials instead of steel to increase safety, life and weight of the end product.
The fibreglass market, growing at about 4.5%, is expected to clock 8.5% growth going forward, driven largely by the two sectors in Europe and Asia Pacific, according to experts.
Binani already has a presence in the fibreglass market through subsidiary Goa Fibreglass Ltd, which currently has a capacity of 20,000 tonne per annum and exports to 15 countries globally.
A company statement said the acquisition gives it access to 3B’s two plants in Belgium and Norway with a total capacity of 150,000 tonne per annum and a massive customer base spread across Europe.
Binani could not be contacted for further details.
Sources said the deal will be largely debt-funded. The group has debt of around Rs300 crore on its books.
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