The move is a strategic step in Garware Technical Fibres’ global expansion plan, aimed at strengthening its presence in the offshore, aquaculture, and marine sectors, particularly across Europe.
Headquartered at Valderoey, near Alesund, Norway, OTS is a well-regarded European player known for its premium, value-added synthetic cordage offerings. Its product portfolio complements Garware Technical Fibres’ existing capabilities, while opening up new geographies, customer segments, and applications for mutual growth.
Also Read: Garware Technical Fibres targets 15% annual profit growth, eyes margin expansion
Vayu Garware, Chairman and Managing Director, Garware Technical Fibres, said, “This acquisition is more than a portfolio addition is a strategic alignment with our mission of co-creating locally relevant and globally scalable innovations that deliver value to our customers.”
The acquisition also brings in a team of highly skilled Norwegian engineers and domain experts known for their technical depth, customer-centricity, and innovative mindset-qualities that closely reflect Garware Technical Fibres’ values and culture.
The acquisition is proposed to be funded through internal accruals of Garware Technical Fibres. The transaction is earnings per share (EPS) accretive as well as positive for return and cost efficiency (RaCE), which is in line with Garware Technical Fibres’ focus on efficient capital allocation.
Also Read: Garware Technical Fibres considers inorganic growth for expansion in FY24
Shares of Garware Technical Fibres Ltd ended at ₹864.60, up by ₹11.80, or 1.38%, on the BSE.
