Hemas acquires Atlas, a popular brand of school and office needs
View(s):Hemas Holdings PLC has acquired 75.1 per cent of Atlas Axillia Co (Pvt) Ltd, Sri Lanka’s leading school and office brand, for a consideration of Rs. 5.7 billion. The existing shareholders of Atlas will retain a stake of 24.9 per cent in the company post-acquisition, Hemas said in a media release.
Nirmal Madanayake, Managing Director of Atlas Axillia Co. said, “Atlas Axillia is on a great journey of growth and we were keen to take our organisation to the next level.
We went through a rigorous process to find the right partner, and we saw a great business and cultural fit with Hemas. Both our organisations have a rich history of bringing loved brands to Sri Lankan homes and have served the Sri Lankan consumer with high quality, affordable and innovative products. I am deeply proud of the Atlas journey over the past 58 years and of the place that this brand holds in Sri Lankan consumers’ hearts. As we embark on the next phase of growth, we are delighted to have a high quality partner with similar values.”
Steven Enderby, Group CEO of Hemas Holdings PLC, said the group is expanding its presence in the Sri Lankan consumer market by acquiring one of the most respected local brands with market leading positions for its notebooks, pens, pencils and colour products.
Atlas will become the third largest business in the Hemas Group and will operate independently as a subsidiary of Hemas Holdings PLC. Hemas said it aims to continue to drive Atlas’ excellent track record of sales growth; and strengthen its market leading position, highly effective lean manufacturing and enviable dividend track record.
“The group will cross-fertilise brand and marketing insights between the business and its Home and Personal care portfolio as well as deliver route to market excellence through our two significant island wide sales and distribution networks. In addition, Hemas will look to reduce funding costs and enhance talent attraction and development at Atlas,” the release added.
Atlas Axillia Co., formerly known as Ceylon Pencil Company (Pvt) Ltd. was founded in 1959 by the Madanayake family. The company is the market leader in school stationery and notebooks, pens, pencils and colour products, with products retailed in over 70,000 outlets across Sri Lanka.