Tide Water Oil is in focus due to acquisition of UK firm

Tide Water Oil is acquiring British lubricant company Price Thomas Holdings for a cash consideration of UK Pound 9.59 million (about Rs 91 crore). The Company also signed a purchase agreement on April 19. It also acquired 100 per cent equity stake in the company Price Thomas Holdings.The acquisition of UK firm will offer Tide Water Oil an access to the European market and will help to adopt a competitive product pricing.

On financial front, Price Thomas Holdings' turnover stands at UK Pound 10.92 million (Rs 104 crore) for the year ended December 2014. The company’s profit before tax was at UK Pound 0.87 million (Rs 8.26 crore) as of December 2014.

Financially, Tide Water Oil’s revenue increased by 4.68 per cent to Rs 246 crore in Q3FY16 as compared to same period in previous fiscal year. The company’s EBITDA was boosted by 77.5 per cent to Rs 32.91 crore in Q3FY16 on a yearly basis. Its net profit almost doubled to Rs 26.33 crore in Q3FY16 as compared to same period in previous financial year.

The share price of Tide Water Oil increased by 5.67 per cent on bourses in early trades; and is trading at Rs 6412 on an intraday basis.

Price Thomas Holdings has its manufacturing set-up in the UK. The company is a supplier of lubricant and car care products. It also exports products to Ireland, Sweden and Bulgaria.

Tide Water Oil manufactures and sells Veedol (Lubricating Oil). The company's products are marketed under the Veedol brand name. Its products include automotive lubricants, industrial lubricants and genuine oils. Automotive lubricants comprise diesel engine oils, two wheeler oils, passenger car motor oils, gear and transmission oils, and greases. Industrial lubricants consist of industrial oils, industrial greases and industrial specialty products. Genuine oils include oil for L&T Komatsu, 100 and SML ISUZU LT.