An Elland company making sealants, adhesives, waterproofing compounds and other building chemicals has entered into a joint venture agreement with one of India’s fastest-growing manufacturers of pipes and piping systems.
Following an equity deal, Bond It, based at Lowfields Business Park, will operate in partnership with Gujarat-based Astral Poly Technik Ltd.
Listed on both the Bombay Stock Exchange and the National Stock Exchange of India, Astral Poly Technik is a £450m business making a range of piping products for applications including fire sprinkler systems, bore wells, gas and solar applications and agricultural piping systems.
Astral is also a major producer of Lubrizol Corporation CPVC products under license from the Berkshire Hathaway company, which is ranked on the Forbes Global 2000 list and is part-owned by US billionaire business magnate Warren Buffett.
In addition, Astral distributes world-renowned products under license such as low noise piping systems and solvent cement for joining pipes and fittings.
Astral was the first firm in India to introduce CPVC pipes and fittings, lead-free PVC piping systems and foam core piping systems. It also holds international accreditations such as National Sanitation Foundation certification.
Financial due diligence for the deal was carried out by KMPG, while Sandip Khroud, associate in the corporate team and India specialist at law firm Irwin Mitchell, led the UK legal team. The deal was financed by HSBC.
Bond It plans to use the joint venture relationship to continue aggressive plans for expansion.
The business has enjoyed considerable growth and success in recent years and has supported this with significant investment into areas such as additional warehousing and high-efficiency production facilities.
Bond It’s existing senior management team retains its equity share in the business and remains in place.
David Moore, managing director at Bond It, said: “The deal with Astral Poly Technik comes after extensive negotiation and represents a win-win situation for everyone involved.
“By enjoying access to Bond It’s range, which includes plumbing solutions, our partners at Astral Poly Technik are able to complement their well-respected pipes and piping systems with a variety of related and equally high quality products.
“This will enable them to maximise some of the impressive opportunities offered by the Indian economy - one of the fastest growing in the world.
“For Bond It, meanwhile, the additional backing will enable us to accelerate ambitious and global plans for the future, and to offer our growing customer base more products in more volumes than ever before.
“We will also be able to make further investments into those areas which make a real difference to customers - such as logistics, product development and sales support.”
Sandeep Engineer, chief executive at Astral Poly Technik, said: “The equity deal with Bond It represents Astral Poly Technik’s second joint venture outside of India.
“We saw the company as an attractive investment opportunity after encountering its Indian operations and experiencing the quality of its products. We also recognise that the market for these products in India and in neighbouring countries is huge and continuing to grow.
“The joint venture will enable us to share in Bond It’s success and to add to it through the provision of additional backing, expertise and opportunities.”