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.

Singhi Advisors were the sole advisors to the transaction.

Transaction Reference: Press Release

Udaipur-based PI Industries is into agri inputs, fine chemicals, CRAMS, polymers and engineering plastic compounds.

PI had diversified into polymer compounding business in 1994 and since then has been closely working with OEMs in automotive, electricals and home appliances industry segments to develop bespoke engineering plastics compounds.

This year in July, PI Industries received $31 Mn custom synthesis contract.

PI industries reported a sales turnover of Rs.186.98 Cr with net profit of Rs.18.75 Cr for the quarter ended September 2010. For quarter ending September 2009, its sales was Rs.155.52 Cr with net profit of Rs.12.84 Cr.

Euronext (Paris) listed Rhodia is a chemical firm and has operations in India since 2001 through its surfactants business, serving the home & personal care and coatings markets.

Rhodia, caters to automotive, electronics, flavors & fragrances, health, personal & home care, consumer goods & industrial segments and employs 13,600 people worldwide and generated sales of $5.3 Bn in 2009.

Previous Article

I-Bank Onelife Capital Advisors Files DRHP For IPO

Next Article

United Spirits Plans Preferential Allotment To Diageo

KVEZAR VIEW

  DEAL TRACKER FOR

Date	Transaction	Type	Buyer	Size ($mn)
21/12/10	PI Industries - PI Polymer - Rhodia	M&A	Rhodia SA	-

 

  Recent Transactions In The Sector

Date	Type	Buyer	Target	Size ($mn)	State
21/05/13	M&A	Kingfa Sci & Tech Company Limited	Hydro S and S Industries Limited	18.17	Planned
05/04/13	M&A	Hindustan Unilever Limited	Aquagel Chemicals Private Limited	-	Announced
03/04/13	Capital Market	Zuari Agro Chemicals Limited	Mangalore Chemicals & Fertilizers Limited	8.15	Completed
12/03/13	M&A	Berger Paints India Limited	Architecture Unit (Sherwin-Williams)	-	Announced

 

  Profiles

Company
Name	Promoters	Office	Competitor	Website
PI Industries Limited	Salil Singhal	UdaiSagar Road	Aero Agro Chemical Industries Limited Bayer CropScience Limited United Phosphorus Limited Nagarjuna Agrichem Limited	http://www.piindustries.com

  Advisor

Singhi Advisors

All Comments

Readers' Recommendations

Post a Comment

Display Name		E-mail
Comment
Comments are moderated and generally will be posted if they are on-topic and not abusive.