Sudarshan Chemical Industries (SCIL) on Friday said it will acquire the global pigment business of Heubach Group of Germany for Rs 1,180 crore. This acquisition will be through a combination of an asset and share deal through Sudarshan Europe BV, a wholly-owned arm in the Netherlands (SEBV Europe).
This strategic acquisition may close in three to four months and will create a global pigment company, combining SCIL’s operations and expertise with Heubach’s technological capabilities.
Rajesh Rathi, managing director, Sudarshan Chemicals, will lead the combined entity. He said SCIL will integrate these two companies to create a truly global pigments company, with Frankfurt remaining a strategically important location.
The acquisition will expand Sudarshan’s global presence and create a pigment portfolio with operations across 19 sites globally including Europe and the Americas. Post-acquisition, the combined company will have a broad pigment portfolio of products.
Post-acquisition, the combined company will have a broad pigment portfolio of products and a strong presence in major markets including Europe, the Americas and the APAC region.
The Heubach Group has a 200-year history and became the second-largest pigment player in the world after its integration with Clariant in 2022.
Heubach had over a billion euros in revenue in FY21 and FY22 and 878.8 million euros in 2023. The Group faced financial challenges over the past two years due to rising costs, inventory issues, and high interest rates. SCIL’s acquisition of Heubach will address these challenges with a clear turnaround plan, Rathi said. Heubach GmbH filed for insolvency in April in response to over-indebtedness in the context of rapidly changing financial markets of the past two years and the unsuccessful attempt to achieve a financial restructuring with all shareholders and lenders.
Heubach has a broad product portfolio with a large percentage of specialities including customized products with applications in coating, plastic, inks, automotive, electrical and electronics. Heubach has 17 manufacturing sites globally.
Sudarshan Chemical is a colour solutions provider of performance colourants, organic, inorganic and pearlescent pigments and dispersions. SCIL has manufacturing facilities in Roha and Mahad in Maharashtra. SCIL operates under 16 brands and has a 35% domestic market share in its product category.
From: financialexpress
Financial News
