India's Borosil to buy solar glass maker Interfloat Group

India-based Borosil Renewables Ltd (BSE:BORORENEW) has agreed to acquire Interfloat Group, Europe’s largest manufacturer of solar glass, in a cash and stock deal that will boost its solar glass output substantially.

Interfloat Group consists of Germany-based GMB Glasmanufaktur Brandenburg GmbH, which operates a solar glass plant with a production capacity of 300 tonnes per day, and Interfloat Corp, based in Liechtenstein. In 2021, the group generated revenue of about EUR 60 million (USD 65.32m).

GMB will be acquired for a cash consideration of EUR 24.91 million and an additional amount depending on the target business's performance, according to a stock market filing from Monday.

For Interfloat Corp, Borosil will pay EUR 5.09 million in cash, EUR 22.5 million in stock and an additional amount depending on Interfloat's results.

The acquisition will raise Borosil’s solar glass output to 750 tonnes per day from the current 450 tonnes per day. The Indian manufacturer aims to reach 1,550 tonnes per day by the end of 2023/24 and 2,100 tonnes per day by the end of 2024/25.

As part of its growth strategy, Borosil is planning to increase the capacity at GMB’s Tschernitz plant near Berlin to 500 tonnes per day by 2023.

"We believe that by leveraging the existing synergies and several complementary skill sets offered by the two companies, we will be able to serve our customers better. With the capacity expansions planned in India and Europe in the near future, we expect to enhance the reliability of our supply chains for our customers," said Borosil's executive chairman Pradeep Kheruka.

(EUR 1 = USD 1.089)

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