Asian Paints Limited (NSEI:ASIANPAINT) entered into Share Purchase Agreement to acquire 49% stake in The White Teak Company from Gagan Mehta and Pawan Mehta for INR 2940 million on April 1, 2022. Asian Paints would be acquiring 49% of its equity share capital for a consideration of INR 1800 million along with an earn out upto a maximum of INR 1140 million, payable after a year, subject to achievement of mutually agreed financial milestones. For the financial year 2020-2021 The White Teak Company has annual turnover of INR 376.6 million. It is also agreed to acquire the remaining 51% stake in White Teak in a phased manner. Both the promoters of White Teak would continue to lead the business. Pawan Mehta would continue to be the Chief Executive Officer and Gagan Mehta would be the Chief Operating Officer of White Teak. Post-acquisition of 49% stake, White Teak will become an Associate Company. Smruti Shah of Cyril Amarchand Mangaldas acted as legal advisor to Asian Paints Limited (NSEI:ASIANPAINT). HDFC Bank served as the M&A advisors to the shareholders of White Teak on the transaction. Wadia Ghandy & Co. acted as legal advisor to the sellers. PricewaterhouseCoopers Private Limited acted as an accountant and financial due diligence provider to Asian Paints Limited.

Asian Paints Limited (NSEI:ASIANPAINT) completed the acquisition of 49% stake in The White Teak Company from Gagan Mehta and Pawan Mehta on April 2, 2022.