PCBL Ltd has announced an all-cash deal of Rs 3,800 crore to acquire Pune-based speciality chemicals company Aquapharm Chemicals Private Limited, marking the largest acquisition by Calcutta-based RP-SG Group in the manufacturing sector.
PCBL, formerly Philips Carbon Black Ltd, has executed a share purchase agreement with ACPL and its shareholders, notably Vimal V. Mangwani, Dharmesh Mangwani, Nitin Raojibhai Desai and others on Tuesday for undertaking the proposed transaction.
Aquapharm, which had a consolidated turnover of Rs 2,008.8 crore and EBIDTA of Rs 417 crore in 2022-23, is a private company engaged in the business of manufacturing specialty chemicals offering water treatment solutions to global customers across diverse end markets.
This acquisition of ACPL marks PCBL’s foray into global specialty segments of water treatment chemicals and oil & gas chemicals and it is the first milestone in achieving the vision of creating a multi-platform global specialty chemical business portfolio, PCBL informed the bourses.
Commenting on the proposed transaction, Sanjiv Goenka, chairman of PCBL and RPSG Group, said: “Aquapharm is a leading speciality chemicals company and India’s largest phosphonate producer. The acquisition is value accretive and margin accretive and in the space of fast growing high margin chemicals. It is a platform which offers a lot of growth and high margins. It is a unique opportunity and we are delighted to take this opportunity.”
The company said that the proposed transaction shall be financed through a mix of internal accruals and external fund raise by the company and/or its affiliates/associates.
The deal may be concluded in two-three months, subject to conditions precedent and approval from the Competition Commission of India.
PCBL, India’s largest producer of carbon black which finds usage in the tyre industry, posted a revenue of Rs 5,873.89 crore in 2022-23 and a net profit of Rs 444.09 crore.
It generated EBIDTA of Rs 775 crore. It has a market capitalisation of Rs 9,598 crore as on Tuesday.
The company has five manufacturing facilities, including at Durgapur in Bengal.
