Sintex plans a European buy

Plastic and textiles maker Sintex Industries Ltd plans to acquire a composites firm with sales of about $30 million in Europe by March 2008, a top company official said.The company is on the verge of finalising a deal in Europe, where it has been talking to 3-4 companies, managing director Amit Patel said on Tuesday.
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“We do have a presence in the US market, now we are keen to have distribution network in the European market. The acquisition will help us strengthen our technology and network,” he said.

Sintex acquired Wisconsin-based Wausaukee Composites for $20.5 million in June. In 2006 it bought the south Asian operations of Germany’s Zeppelin Mobile System, and is still scouting for more in the plastic composites segment.

“Just in case the deal does not materialise in Europe, we have some companies in US who are interested in having us as acquirers,” Patel said. “The acquisitions will help in building a global presence in the auto and electrical plastic accessories market and add to the company’s consolidated topline as well as bottom line.”

Sintex is also considering buying an Indian composites company by December 2007.
It has set aside Rs 110 crore to be funded through internal accruals for these acquisitions, Patel said.

Read more in The DNA Money article.

Sintex buys 81% stake in Wausaukee

Sintex Industries board of directors yesterday approved acquisition of 81% of the shareholding of Wausaukee Composites (WCI), a company organized under the laws of the State of Wisconsin, US by the company.

According to a release issued by Sintex to the BSE today, the company has acquired 81% of the shareholding of WCI in the first tranche and the balance shareholding subsequently. Sintex Holding US, the subsidairy of Sintex has acquired the stake of WCI.

'WCI is a technologically sound company offering large components with complex design parameters. WCI has an established presence in the medical imaging, mass transit, industrial / agricultural equipment, wind energy, commercial furnishings, recreation and corrosion-resistant materials handling sectors. “Composites” is a huge and growing market globally. Composite offers better strength to weight ratio, non corrosion, weather ability, design flexibility and molding ability, heat & chemically resistant and also offers electrical insulation properties.', the release added.

Further, the company believes that the acquisition could help both the company and WCI to expand their product portfolio as well as market penetration and development of products through the company's cost advantages and potential access to the Indian market coupled with the market reach and superior application technology of WCI.