Sudarshan Europe BV is set to acquire global pigment business operations of Germany-based Heubach Group for the total amount of approximately Rs 1,180 crore.
The subsidiary of Sudarshan Chemical Industries Ltd. will acquire the assets and business operations of:
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Heubach Colorants Germany GmbH.
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Heubach GmbH.
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Dr. Hans Heubach GmbH.
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Heubach Group GmbH.
It will acquire the above and other participations held by Heubach Holding Switzerland AG, in downstream group companies in various countries from the insolvency administrator in the aforementioned countries.
It will also acquire 100% shareholding of Heubach Holdings S.a.r.l., a Luxemburg-based Heubach Group Co. that has investments in shareholding in companies based in USA and India.
Heubach operates in the speciality chemicals industry, which consists of organic pigments, inorganic pigments, dyes, dispersions and anti-corrosion pigments.
The acquisition is expected to close in three to four months, subject to shareholder approval from the acquiring company and regulators.
Sudarshan Chemical Industries expects a robust presence in global markets in continents like Europe and America after the acquisition, along with a "comprehensive pigment portfolio of high-quality products", according to the exchange filing.
"It will enhance SCIL’s product portfolio, giving it deeper access to customers and a diversified asset footprint across 19 sites globally," Sudarshan Chemical Industries said in the filing.
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Share price of Sudarshan Chemicals Industry closed 14.81% higher at Rs 1,164.90 apiece on the NSE, compared to a 0.14% decline in the benchmark Nifty 50.
The stock has fallen 112.19% on a year-to-date basis and 143.83% over the past 12 months.
Of the 10 analysts tracking the company, six have a 'buy' rating on the stock, one suggest a 'hold' and three recommend a 'sell', according to Bloomberg data. The average of 12-month analysts' consensus price targets implies a potential downside of 18.2%.
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