UpdateSolvay to acquire control of India’s Sunshield Chemicals

13 September 2012 09:29  [Source: ICIS news]

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SINGAPORE (ICIS)--Solvay will acquire controlling interest in India’s surfactants producer Sunshield Chemicals for an undisclosed amount as part of its strategy to expand business in the south asian country, the Belgian company said on Thursday.

“This acquisition will enable Solvay's Novecare business to accelerate growth plans in India for the home and personal care, agrochemicals, coatings and industrial applications markets. Solvay is determined to double its sales in India by 2015,” it said.

The Belgian firm’s Indian operations generated €180m ($231m) in net sales last year, with seven production sites and about 900 employees in the south Asian country, it said.

Apart from Novecare, Solvay’s activities in India span engineering plastics and specialty polymers.

“With Sunshield Chemicals, we are expanding our existing industrial base in this country and reinforcing our commercial presence in strong growth market segments," Novecare president Emmanuel Butstraen said.

Solvay has signed an agreement with India’s Amit Choksey Group for the acquisition of Sunshield Chemicals, which is listed on the Bombay Stock Exchange.

The Mumbai-based firm had generated net sales of rupee (Rs) 943m ($17m) in the year ended 31 March 2012, Solvay said.

“The price of the acquisition results in an enterprise value multiple below 9x [nine times] the estimated adjusted EBITDA [earnings before interest, tax, depreciation and amortisation] for the current year,” Solvay said.

The acquisition, which is subject to regulatory approvals, is expected to be concluded in about three months, the company said.

($1 = €0.78 / $1 = Rs55.22)

By: Pearl Bantillo
+65 6780 4359

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