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Dailymirror.news,Mumbai, October 14th, 2024:Sudarshan Chemical Industries Limited (SCIL) has announced that it has entered into a definitive agreement to acquire Germany-based Heubach Group through a strategic combination of asset and share deals. This acquisition aims to establish a global pigment powerhouse, merging SCIL’s extensive operations and expertise with Heubach’s advanced technological capabilities.
Upon completion of the acquisition, the newly formed entity will boast a comprehensive portfolio of high-quality pigments and a robust presence in key markets across Europe and the Americas. This strategic move is expected to significantly enhance SCIL’s product offerings, providing access to a wider customer base and diversifying its asset footprint across 19 global sites.
Mr. Rajesh Rathi, Managing Director of SCIL, expressed enthusiasm about the transaction, stating, “We are delighted with this merger, which unites two businesses that will serve major global markets. Our goal is to integrate these companies effectively, creating a truly global pigments enterprise while ensuring that Frankfurt remains a strategically significant location. SCIL is known for its agility and efficiency, and we will instill this culture throughout the combined organization to transform it into one of the most customer-centric and profitable pigment companies.”
The Heubach Group, which has a rich history spanning over 200 years, became the second-largest pigment player globally after integrating with Clariant in 2022. With revenues exceeding one billion euros in FY21 and FY22, Heubach has maintained a strong international presence, particularly in Europe, the Americas, and the Asia-Pacific region. However, the group has faced financial challenges in recent years due to rising costs, inventory management issues, and high-interest rates. SCIL’s acquisition is expected to address these challenges with a well-defined turnaround plan.
Bram D’hondt from Heubach remarked, “By partnering with SCIL, we aim to reclaim our legacy of over 200 years in providing high-quality products to our customers. Together, we will reshape the pigments industry, focusing on customer centricity and product excellence. Our combined capabilities will enhance our service to customers, and we eagerly anticipate this next chapter with SCIL.”
Crawford Bayley and Noerr are providing legal counsel to Sudarshan Chemical, while DC Advisory is acting as the financial advisor for the transaction.
Key Strategic Benefits of the Acquisition:
- Customer-Centric Focus: Following the acquisition, SCIL aims to position itself as the supplier of choice across various segments, leveraging its wide product portfolio to meet diverse customer needs effectively.
- Enhanced Global Position: The newly combined entity is poised to become the most valuable pigment company globally, with strengthened financial capabilities and an expansive product offering that caters to international clients, particularly in Europe and the Americas.
- Agile Organizational Culture: The integration is expected to foster a culture of agility and efficiency, maximizing value for stakeholders through best practices and significant synergies across functions.
- Leadership and Expertise: The combined company will be led by a high-performing management team with proven technical skills and execution capabilities, ensuring a seamless transition and continued growth.
Heubach’s extensive product portfolio, which includes a significant range of specialty and customized products, serves a robust clientele of global blue-chip companies across industries such as coatings, plastics, inks, automotive, and electronics. With 17 manufacturing sites worldwide, Heubach offers stability against geopolitical and supply chain challenges, fostering long-term relationships with suppliers and customers.
The acquisition is anticipated to finalize within 3-4 months, pending customary closing conditions, including regulatory approvals and the consent of SCIL shareholders.
