Prince Pipes & Fittings Ltd Signed Agreement to Acquire Klaus Waren Fixtures

On March 20, 2024, the piping solutions provider Prince Pipes and Fittings stated in an exchange filing that the company had signed an asset purchase agreement (APA) with Klaus Waren Fixtures Private Limited and Mr NM Shah for the purchase of certain assets of Klaus Waren Fixtures. These include (i) the ‘Aquel’ brand (along with all the relevant intellectual property), (ii) land, (iii) buildings and miscellaneous civil structures, (iv) plant and machinery, (v) dies, tools and fixtures, and (vi) other office equipment in two tranches. The consideration for acquisition will be in cash, and Prince Pipes and Fittings will pay a consideration of ₹55 crore.

The first tranche of the acquisition of the relevant Assets is to be completed within 10 days from execution. The second tranche of the acquisition of the relevant Assets is to be completed by October 15, 2024, which is subject to the completion of the conditions precedent to the second tranche of the acquisition, including but not limited to obtaining consent from governmental authorities.

The company has clarified that the transaction would not fall within related party transactions and that none of the promoter/ promoter group/ group companies have any interest in the assets being acquired.

Objective of the Acquisition

The acquisition of the ‘Aquel’ brand (including all its intellectual property rights) along with other assets will help the company set up an in-house manufacturing facility, among other things, resulting in greater value in the bathware segment. This growth opportunity is aligned with the company’s strategic directions.

About Prince Pipes & Fittings Limited

Prince Pipes and Fittings Limited is one of the leading integrated piping solutions providers & multi polymer manufacturers, with 7 strategically located manufacturing units across the country. During Q3 FY2034, the company’s revenue dipped 12% on a YoY basis to ₹619 crore, and volumes dropped 2% to 42,665 MT.

On March 21, 2024, the share price of the company opened at ₹568.35 and touched the day high of ₹568.35

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.