Mumbai, March 11: Berger Paints today acquired the decorative paints business of Sherwin Williams Private Ltd through its wholly owned subsidiary — Brushworks Paints Ltd — for an undisclosed sum.
The acquisition is likely to strengthen Berger’s presence in key markets such as Mumbai and Pune.
According to the agreement with Sherwin, Berger will use its brand name for around five years.
The acquisition will be funded through internal accruals.
Shares of Berger Paints rose 2.66 per cent on the Bombay Stock Exchange to end at Rs 206.85 today against a previous close of Rs 201.50.
Berger is also looking at collaborating with US-based Sherwin Williams in bringing new technology and hi-tech products to India.
Berger is the second largest paints maker in India, and the acquisition is expected to complement its current strengths.
The Calcutta-based company has a strong presence in the east and the northern region. Sherwin Williams has a good presence in the western and southern markets.
Speaking to reporters here today, Abhijit Roy, managing director and CEO of Berger Paints, said the acquisition would enhance the capacity of the company by around 5 per cent. It will also bring certain value-added products to its portfolio.
“This transaction will significantly increase our presence in key markets. It builds on our strategy to grow our architectural paint business throughout India and brings a high quality, committed team of employees to Berger Paints,” K.S. Dhingra, chairman of Berger Paints, said.
Berger Paints, which produces and markets a range of decorative and industrial paint products, has seven manufacturing facilities in the country.
Roy said the company was increasing its capacity through both greenfield and brownfield projects and is looking for more acquisitions.
The paint maker will spend over Rs 240 crore on expanding its capacity, taking its total capacity to 36,000 kilo litres per month by July from around 24,000 kilolitres.