HIL to expand in Europe with Parador

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HIL has acquired the entire shareholding of Germany’s Parador Holdings from existing shareholders NORD Holding, Deutsche Mittelstandsholding, Lubert Winnecken and Hendrik Voß for €72.3 million (US$84 million).

“We advised HIL on key structuring aspects from an Indian legal and tax perspective as the acquisition will involve payment of purchase consideration to the sellers against sale of shares as well as repayment of loans [used] by the target entity’s group,” said Niren Patel, a partner at Khaitan & Co, which advised HIL.

Patel told India Business Law Journal that the proposed acquisition was in accordance with a bid process undertaken by Parador’s shareholders.

HIL, a flagship group company of the CK Birla Group, manufactures green building materials, producing durable roofing solutions, panels, walling blocks, plywood substitutes, high-quality pipes and fittings, and industrial insulation. Parador Holdings, located in Coesfeld, Germany, manufactures laminated and engineered wood flooring products.

Patel and partner Haigreve Khaitan led the core transaction team at Khaitan along with principal associate Minhaz Lokhandwala and associate and Yashashree Mahajan.

Baker McKenzie was HIL’s German legal adviser with a team comprising partners Thomas Gilles and Wendelin Ettmayer and associates Kai Schlender and Stephanie Sauer.

CMS Hasche Sigle advised Parador on the deal. The team consisted of partner Klaus Jäger, counsel André Frischemeier and senior associate Stephan Weling.