DOMS Industries Ltd. has agreed to acquire the Reynolds writing instruments business from entities belonging to Newell Brands Inc. for US$3.7 million, or about ₹31 crore, excluding inventory.
The acquisition is expected to be completed on July 1, 2026.
The transaction gives DOMS ownership of assets associated with the Reynolds business, including manufacturing facilities and intellectual property, as the company seeks to strengthen its position in the writing instruments segment.
Asset purchase agreement signed
Under the agreement, DOMS will acquire:
- Plant and machinery
- Moulds
- Contracts
- Social media accounts
- Employees
- Intellectual property related to the Reynolds business
The sellers are six entities belonging to Newell Brands, the US consumer products company that owns brands including Reynolds, Paper Mate and Sharpie.
The transaction is structured as an asset purchase.
Deal value and structure
The aggregate consideration stands at US$3.7 million, excluding inventory.
According to the company, the allocation includes:
- Equipment: US$3.52 million
- Trademarks: US$125,000
- Patents: US$50,000
- Copyrights: US$4
Inventory will be paid for separately at closing and adjusted later based on actual stock value.
DOMS said the acquisition will be funded through internal accruals and will not require fresh borrowing or issuance of shares.
Licensing arrangements
As part of the transaction:
- DOMS will allow the seller to continue using the “Reynolds” name in its corporate identity.
- DOMS will receive a royalty-free licence for the Paper Mate brand to fulfil certain agreements being transferred.
- The seller will continue supplying pen tips to DOMS after completion.
Pen segment expansion
DOMS is a leading player in India’s organised stationery market and has a strong presence in pencils and art materials.
The acquisition gives the company a stronger foothold in writing instruments through the Reynolds brand, known for products such as the Reynolds 045 ballpoint pen.
FY26 financial performance
For FY26, DOMS reported:
- Revenue of ₹2,326.4 crore, up 21.6%
- EBITDA of ₹402.6 crore
- EBITDA margin of 17%
- Net profit of ₹240 crore, compared with ₹214 crore in FY25
Reserves increased to ₹1,159 crore from ₹942 crore a year earlier.
The company reported:
- Return on equity of 20.7%
- Current ratio of 2.17
- Negligible debt
DOMS shares were trading around ₹2,230.
According to the source copy, the stock has gained more than 8% since June 8, when it traded near ₹2,050.
Trailing earnings per share stood at ₹37.93 for FY26, compared with ₹33.34 in FY25. The stock trades at a trailing price-to-earnings multiple of about 58 times.
Company profile
Founded in 2006, DOMS Industries manufactures and sells stationery and art products under the DOMS brand.
The company designs and produces a wide range of products and is among the leading players in India’s organised stationery market.
TL;DR:
DOMS Industries will acquire the Reynolds writing instruments business from Newell Brands for about ₹31 crore, excluding inventory. The deal, expected to close on July 1, includes manufacturing assets, employees and intellectual property linked to the Reynolds brand.
AI summary:
- DOMS will acquire the Reynolds writing business for about ₹31 crore.
- The transaction is expected to close on July 1, 2026.
- The deal includes plant, machinery, employees and intellectual property.
- Inventory will be paid for separately.
- FY26 net profit rose to ₹240 crore.
