Sintex Industries acquires Nero Plastics

Sintex Industries Ltd has informed that the Company's downstream subsidiary Wausaukee
Composites mc, USA (WCI) acquires its competitor, Nero Plastics Inc, USA

Wausaukee Composites also bags a major order from a large player in the US energy sector

Strategic acquisition strengthens Wausaukee Composites position as a premier manufacturer of highly engineered structural plastic products supplied to original equipment
manufacturers, worldwide

- Nero Plastics Inc. is a custom molder of low and medium volume structural plastic and composite components

- Founded in 1980, the Company currently utilises two facilities and is based in Owosso, Michigan

- Nero's customer base comprises leading Companies including Caterpillar, Motor Coach Industries, and Kenworth worth Truck. Caterpillar contributes around 65% of its sales, and is also a major customer of WCI

- Wausaukee Composites has also been awarded a production contract from a leading player in the non conventional energy segment in the US, to manufacture 600 wind turbine generator nacelles over a three year period

- Towards the above contract, WCI Intends to manufacture the nacelles in an additional production facility to be acquired in USA.

Commenting on the acquisition, Mr. Amit Patel, Managing Director, of the Company, said,
"This acquisition represents a significant step towards consolidating our position in the US plastic composite market. Nero Plastics Inc is a consistently performing Company, and has displayed steady growth through the years. The Company has a portfolio of established products that have tremendous potential, catering to leading Companies in the US plastic composite segment. The acquisition which is earnings accretive will add strongly to WCI’s consolidated topline as well as bottomline, due to our commonly shared manufacturing synergies and customer base.”

Details of the Transactions:

- Nero Plastics Inc Acquisition

Amherst Partners of Birmingham, Michigan represented Nero Plastics in this transaction.

Nero Plastic Inc. reported sale of USD 17.5 mn in 2006. Nero Plastic Inc management team and workforce of 181 employees would be Integrated with WCI. Kevin Hughes, previously the CEO (CEO elect) at Nero Plastics was named Vice President, Wausaukee Composites — Owosso Division.

Key benefits from the transaction

- Diversity in product portfolio & Consolidation of customer base

The combination of Wausaukee Composites and Nero Plastics will be highly complementary. WCI, with the acquisition of the Nero Plastics Inc, would gain access to low and medium fiber reinforced plastic composites, which would complement its own product offerings. This business integration will further expand the array of comprehensive structural plastic molding solutions that WCI provides to its Global Fortune 500 customer base.

- Well developed Manufacturing Design and Tooling capabilities

Nero serves the heavy equipment, mining, heavy truck, mass transit, medical, and sporting good industries. Nero Plastics brings significant additional capacity with respect to WCI’s core molding capabilities, and also provides additional competitive strength in a number of molding processes where Wausaukee Composites has limited capacity or no prior experience. In addition to manufacturing, Nero also provides design, engineering, and testing support.

- Common Synergies to be a growth driver

Nero is a top-3 competitor of WCI in the industrial truck and tractor market segment. The growth drivers of WCI currently are highly engineered composite components, while the target Company is engaged in the manufacture of low and medium volume composite fibers. This acquisition would enhance the Company’s product mix and provide an impetus to WCI’s existing Composites business.