Asian Paints Expands Ownership with 11% Stake in White Teak
Mumbai, June 23, 2023 – Asian Paints Ltd, a leading paint company, has announced its acquisition of an additional 11% stake in White Teak, a renowned home decor company. The deal, valued at ₹54 crore, signifies Asian Paints’ commitment to expanding its presence in the home decor market. As part of the agreement, Asian Paints has paid White Teak ₹59.5 crore as an earn-out, dependent on the achievement of predetermined financial milestones.
With this acquisition, Asian Paints now holds a controlling 60% stake in White Teak, solidifying its position as a major shareholder. The remaining 40% of equity share capital is expected to be acquired between the fiscal years 2025 and 2026, for a maximum consideration of ₹360 crores. The final purchase amount will be determined based on the successful attainment of specified financial targets for the business.
White Teak, a private limited company, specializes in designing, trading, and offering a wide range of decorative lighting products and fans. The company’s expertise and product offerings align well with Asian Paints’ strategic vision and aim to enhance their overall home decor portfolio.
This latest investment by Asian Paints follows its initial acquisition of a 49% stake in White Teak back in April 2022, for a total consideration of ₹180 crores. Additionally, an earn-out of up to ₹114 crores was included, subject to the fulfillment of mutually agreed financial milestones after one year.
White Teak’s performance in the fiscal year 2023 was impressive, with a turnover of ₹108.5 crores. As of March 31, 2023, the company’s net worth stood at ₹24.6 crores, further emphasizing its growth potential and value to Asian Paints.
The news of Asian Paints’ increased ownership in White Teak has positively impacted its stock performance. Asian Paints’ shares closed 1.5% higher at ₹3,297.7 per share on the NSE, reflecting investor confidence and market enthusiasm.
About Asian Paints:
Asian Paints Ltd is a leading paint company based in Mumbai, India. The company offers a comprehensive range of decorative and industrial paints, as well as home decor solutions. With a strong presence in both domestic and international markets, Asian Paints is renowned for its quality products and commitment to customer satisfaction.
For more of the Latest News, Click Here
