Borosil announced the execution of a binding share purchase agreement (SPA) through its subsidiary Klass Pack to acquire an initial 90.17 per cent stake in Goel Scientific Glass Works, a scientific glassware company. This acquisition is intended to add a complementary product portfolio to Borosil’s Scientific and Industrial Products (SIP) business. Upon completion of the transaction, Goel Scientific Glass Works will become a subsidiary of Klass Pack and in turn a step-down subsidiary of Borosil.
Klass Pack is in the business of primary pharma packaging and manufactures tubular glass vials and ampoules for the pharma industry. Upon approval of the National Company Law Tribunal, Mumbai Bench, to the ongoing Composite Scheme of Arrangement, amongst Borosil, Klass Pack and Borosil Technologies, the SIP business viz. lab glassware, lab instrumentation and pharma packaging business of these three entities will stand consolidated in Klass Pack.
Goel Scientific Glass Works is a public limited company and has two plants located in Vadodara, Gujarat and is a manufacturer of industrial glass process systems as well as laboratory glassware and has a team of glass blowers who are skilled at manufacturing borosilicate glass vessels up to a capacity of 500 litres.
With this acquisition, Borosil’s SIP business will add a complementary product portfolio to its product range and will allow Borosil to use its brand and strong sales and distribution channel for the purpose of import substitution in this segment.
In recent years, Borosil’s growing SIP business has made significant investments to expand its portfolio with related diversifications in pharmaceutical primary packaging, analytical vials and laboratory bench top equipments. The proposed expansion is in the sphere of glass industrial process systems – a natural extension of Borosil’s SIP product portfolio.
For this transaction, Monarch Networth Capital acted as sole financial advisor and PricewaterhouseCoopers and Khaitan & Co acted as the due diligence partners to Borosil.