CIC sells Chemifix biz for Rs. 345 m

CIC Holdings Plc has sold popular Chemifix business to foreign owned and reputed adhesive specialist Pidilite Lanka Ltd., for Rs. 345 million.

The sale includes trade mark and other brands associated with PVAC adhesives business along with the commercial and technical known how relating to the PVAC adhesive business.

Despite the sale, CIC said it will continue to manufacture the products to Pidilite Lanka Ltd., under a tolling agreement for the next three years which may be extended by mutual consent. CIC will also be the sole distributor for part of their adhesive and stationary range.

Pidilite International Pte Ltd., along with Pidilite Middle East Ltd., the majority shareholders of Pidilite Lanka Ltd., are wholly owned subsidiaries of Pidilite Industries Ltd., a reputed adhesive manufacturer.