PI Industries Sells Polymer Biz To France-Based Rhodia
by Deeshesh Chheda
French firm Rhodia SA will acquire PI Polymer, the engineering plastics business of@PI_Industries Limited.
This transaction supports the French company’s aim to increase its market share in the Indian polyamide compound market to more than 15% by 2015.
This strategic sale is part of the restructuring exercise for PI Industries, which will now focus on its core activities of agrochem and fine chemicals.
The deal includes all the assets used and held by PI Polymer, primarily one industrial facility that employs more than 80 people, R&D capabilities, customer base and logistics network in India.
Subject to various conditions, the transactions is expected to complete by the end of March 2011.
PI Polymer has revenue of about $13 million and operates at an EBITDA margin of close to 15%. The acquisition price represents an estimated EBITDA multiple of around 9x. This works out to a deal size of around $17.55 Mn.
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