Aimia to acquire Indian manufacturer Tufropes for C$249.6m

• Post the deal’s completion, Aimia and Paladin will enter into certain agreements, including an option for Paladin to buy up to 19.9 percent minority equity position of Tufropes from Aimia
• Paladin’s Tariq Osman and Eric Hauser will join the board of directors of Tufropes
• The deal is is expected to close before the end of the first quarter

Aimia has signed a definitive agreement to acquire Tufropes, a Mumbai, India-based manufacturer of synthetic fiber ropes and netting solutions for aquaculture, maritime and other industrial customers.

The purchase price is C$249.6 million on a cash-free and debt-free basis.  The deal is likely to be completed before the end of the first quarter of 2023, upon receiving regulatory approvals.

Paladin Private Equity will act as Aimia’s partner in the transaction.

Post the deal’s completion, Aimia and Paladin will enter into certain agreements, including an option for Paladin to buy up to 19.9 percent minority equity position of Tufropes from Aimia within a year of closing.

Further, Paladin’s Tariq Osman and Eric Hauser will join the board of directors of Tufropes and assist its strategic growth initiatives.

Phil Mittleman, CEO of Aimia, said in a statement: “Tufropes represents an outstanding opportunity for Aimia and Paladin to invest in a global market leader, with a long track record of organic growth and strong free cash flow generation, while utilizing Aimia’s sizeable tax attributes to further enhance returns for its stakeholders. The new executive leadership and expanded global sales team will support and grow Tufropes’ long-standing relationships globally. We are excited to be partnering with Paladin Private Equity, whose experience and investment acumen will help Tufropes grow both organically and through potential acquisitions. We also wish to thank the Goel family for over 31 years of stewarding this company through an incredible period of growth and for their help in transitioning the ownership of this company to Aimia.”

“Tufropes’ manufacturing excellence and its modern and cost-efficient operating capabilities have already made the business a top global producer in each of its $500 million end markets,” said Tariq Osman, Paladin’s founder and managing partner. “Aimia and Paladin believe these to be a core tenant of future growth as customers continue to focus on mission-critical materials and ever-increasing safety and regulatory standards.

Tufropes is expected to achieve annual revenue of around C$130 million for the fiscal year ending 31 March 2023, and EBITDA margins of eighteen percent.

Based in Toronto, Aimia is a holding company with a focus on making long-term investments in public and private companies.

Paladin Private Equity is a US private equity firm that invests in the industrial technology sector.

Kotak Investment Banking acted as sole financial advisor to Tufropes and India Nets, and Anagram Partners acted as legal advisor for Tufropes and India Nets. JSA Law acted as legal advisor to Aimia and Paladin.