
RP-Sanjiv Goenka Group, Bain Capital and Dorf Ketal are in talks for the acquisition of specialty chemicals firm Aquapharm Chemicals for a valuation in excess of Rs 4,500 crore, Economic Times reported on Thursday.
Pune-based Aquapharm, promoted by V K Mangwani, manufactures specialty water treatment chemicals, such as phosphonates, polymers, biocides and pharmaceutical intermediaries, used by various industries, including detergents, paper, textile, pharmaceuticals, personal care, water treatment and leather manufacturers.
It has manufacturing facilities in Pirangut and Mahad in Maharashtra, with an installed capacity of 70,000 tonnes. A significant portion of the firm’s business comes from exports to Europe and North America, and it has subsidiaries in Saudi Arabia, Hong Kong, Europe, and the US.
The promoters are likely to sell their entire shareholding in the company, the report said. Stifel Financial Corp has been appointed as the banker for the transaction by Aquapharm.
Indian chemical sector is in huge demand of late as more and more investors are keen on betting in India as global buyers are looking to diversify sourcing beyond China.
In FY2018, Aquapharm acquired US’s Aquapharm Chemicals LLC, which has a facility to make specialty chemicals for the oil and gas sector. Later in 2019, it took over Saudi Arabia-based Unique Solutions for Chemical Industries Co., which deals in desalination plants in Saudi Arabia and has major contracts with a government agency.
As of FY2022, Aquapharm’s consolidated net sales was at Rs 1,616.4 crore, and earnings before interest taxes, depreciation and amortisation (Ebitda) was at Rs 423.3 crore.
In FY21, consolidated net sales stood at Rs 919.8 crore on an Ebitda of Rs 159 crore, VCCEdge showed.
In a report in 2022, Crisil Ratings noted that the firm has established a presence in the global phosphonates sector and is witnessing steady demand.
"The group's longstanding presence has led to healthy relationships with domestic and overseas customers, including Procter and Gamble, Henkel AG, Ecolab Inc, Buckman Laboratories International Inc, and Unilever," Crisil said.
The report further said that the group stands to benefit from the China-plus-one policy of customers, which will lead to moderate revenue growth in the medium term.
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