HIL’s wholly-owned subsidiary HIL International GMBH, will own 100 per cent equity capital of Parador Holdings GmbH. The transaction was completed with shareholders of Parador Holdings GmbH wherein Dhirup Roy Choudhary represented as Managing Director & CEO, HIL, and Managing Director, HIL International GmbH.
The all-cash consideration is being funded by HIL through a combination of Euro debt, INR debt and internal accruals. With this, the Debt-Equity ratio of HIL on a standalone basis will be at 0.55 and on a consolidated basis will be at 1.0. Consolidated financials of Parador Holdings GmbH and HIL is expected to be published as on March 31, 2019 along with the annual results. The consolidation will take into account the Parador financial for the period from September 1, 2018, to March 31, 2019, in the first year in line with IND AS requirements.
CK Birla, Chairman, CK Birla Group, said: “We look forward to a very successful association with Parador to create a stronger combined entity. I compliment both the management teams for their hard work to bring the agreement to fruition seamlessly. As we pursue the identified complementarities between our businesses, HIL will emerge even stronger within its field globally, delivering sustainable value to all its stakeholders.”
Complimenting to the chairman’s sentiments, HIL’s Managing Director & CEO, Dhirup Roy Choudhary, said, “Our vision of moulding HIL into a global building material solutions specialist is a step closer with the consummation of the Parador acquisition. Besides augmenting our business mix into flooring solutions, we are looking at leveraging the trade relationships and market understanding of Parador to strengthen our business position. Parador brings with itself best-in-class technology, brand equity, market access and robust financials and will complement HILs growth aspiration going forward.”
With strong underlying momentum in the core businesses comprising roofing solutions and building solutions, Parador only enhances possibilities for sustainable delivery of performance. Growth in the flooring solution product line finds an attractive demand profile outside the home market in South East Asia, South Africa and India.