Binani Industries Ltd. (BZL), an Indian maker of cement and zinc, is considering buying Platinum Equity LLC’s fiber glass unit for about $275 million, two people with direct knowledge of the matter said.
The unit, 3B The Fibreglass Co., based in Battice, Belgium, would be acquired by a special purpose vehicle controlled by Binani Industries one of the people said, declining to be identified because the matter is confidential. Binani may consider structured equity financing once the deal is completed, the person said.
The purchase would be Binani’s third acquisition in six years, according to data compiled by Bloomberg. Closely held 3B, which supplies fiber glass products to automotive and defense companies, reported revenue of 118.6 million euros ($258.7 million) in 2009, according to data compiled by Bloomberg.
The value of overseas acquisitions by Indian companies has slumped 66 percent this year to $11.57 billion from the same period in 2010, as rising interest rates and a stock market slump deterred deal making, according to data compiled by Bloomberg.
Binani Industries fell 0.9 percent to 132.05 rupees in Mumbai today. The stock has lost 41 percent this year.
IDBI Capital Market Services Ltd., based in Mumbai, is advising Binani on the deal, one of the people said. Binani, which is based in Kolkata, has borrowed to finance 75 percent of the amount, the person said.
Binani spokeswoman Bina Verma, and Hemant Batra, an external spokesman of IDBI Capital declined to comment. Josh Adams at Platinum Equity’s press office in London didn’t respond to an e-mail. Binani Industries also makes fiber glass products in India, according to the company’s website.
Platinum Equity, based in California, bought two European plants of Owens Corning (OC) Inc. in 2008 for 155 million euros and named the company 3B. The buyout firm took over the facilities in Battice, Belgium and Birkeland, Norway. Owens Corning said in May 2008 it will receive $197 million in net proceeds, including $184 million in cash and the rest from liabilities assumed by the purchaser.
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