We are enclosing herewith the Press Release in respect of Acquisition by Man International Steel Industries Company (MISIC), a wholly owned subsidiary of the Company.
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Man Industries (India) Limited announced that its wholly owned subsidiary, MAN International Steel Industries Company (MISIC) in Saudi Arabia, has acquired 100% of National Pipe Company Limited (NPC) for USD 102 million (~INR 1,000 crores). NPC is a profit-making, debt-free API-certified large-diameter carbon steel line pipe manufacturer with 430,000 MTPA capacity located in Dhahran, Saudi Arabia. The acquisition was completed at an attractive valuation of 1.5x EV/EBITDA against Saudi peer multiples of 7-9x, making it 0.7x P/BV (below book value). NPC has cash and liquid assets of USD 83 million and net worth of USD 158.6 million. The transaction is EPS-accretive from Day 1 with an expected payback period of approximately 1.5 years. NPC has been a Saudi Aramco Approved Vendor for over two decades and has a current order book of USD 120 million.
This acquisition is significantly positive for Man Industries shareholders — it adds 430,000 MTPA of API-certified capacity, provides immediate access to Saudi Aramco and other marquee GCC clients, and is EPS-accretive from Day 1 at a heavily discounted valuation. The stock could see positive re-rating given the strategic positioning in Saudi Arabia's infrastructure supercycle.