CORPORATE
Sudarshan Chemical to buy Heubach Group’s pigment business for Rs 1,180 crore
- IBJ Bureau
- Oct 12, 2024
Pune-based Sudarshan Chemical Industries has signed a definitive agreement to acquire the global pigment business operations of Germany’s Heubach Group for Rs 1,180 crore.
The deal, a combination of asset and share acquisition, will help boost Sudarshan’s product portfolio and provide access to Heubach’s technological capabilities and strong presence in Europe and the Americas.
The merged entity will have a broad pigment portfolio, 19 global sites and a diversified asset footprint. In 2022, Heubach had become the world’s second-largest pigment player after integrating with Clariant.
However, the group has been facing financial challenges over the past two years due to rising costs, inventory issues and high interest rates.
The Heubach acquisition will help address these challenges with a clear turnaround plan, Sudarshan has said in a release.
Sudarshan Managing Director Rajesh Rathi will lead the combined company.
The deal will require regulatory approvals, including those from the Competition Commission of India and other authorities in various jurisdictions. The acquisition is expected to close in around four months following approvals from regulators and Sudarshan’s shareholders.
During FY24, the company clocked a net profit of Rs 335 crore on revenue of Rs 2,141 crore, while during the three-month period ended June 2024, it reported a net profit of Rs 41 crore on revenue of Rs 580 crore.
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