India’s carbon black maker PCBL to acquire Aquapharm Chemicals for Rs38bn

MUMBAI (ICIS)–India’s biggest carbon black maker PCBL Ltd plans to acquire specialty chemicals firm Aquapharm Chemicals Pvt Ltd (ACPL) for rupee (Rs) 38bn ($456m), to diversify its portfolio.

PCBL’s board of directors approved the acquisition on 28 November, the company said in a filing with the Bombay Stock Exchange (BSE).

The company was formerly known as Phillips Carbon Black Ltd.

“This acquisition of ACPL marks the company’s foray into global specialty segments of water treatment chemicals and oil and gas chemicals and it is the first milestone in achieving the vision of creating a multi-platform global specialty chemical business portfolio,” PCBL said.

ACPL is headquartered in Pune in the western Maharashtra state and has manufacturing facilities in India, the US and Saudi Arabia.

“Aquapharm (ACPL) is a leading specialty chemicals company and is India’s largest phosphonate producer,” PCBL chairman Sanjiv Goenka said.

ACPL produces specialty chemicals like phosphonates, biodegradable chelating agents, polymers, biocides, oil field chemicals which have application in water treatment, detergents, industrial cleaners, pulp and paper, pharmaceutical and agrochemicals among others.

“The acquisition is value accretive and margin accretive and is in the space of fast-growing high margin chemicals,” Goenka added.

A share purchase agreement was signed with ACPL on 28 November, with the acquisition to be financed through a mix of internal accruals and borrowings, PCBL said.

The transaction is expected to be completed within two to three months once all necessary approvals are obtained, it added.

($1 = Rs83.33)