Mumbai, Apr 12 (PTI) Research-based specialty chemicals manufacturer Dorf Ketal has entered into an agreement to acquire the business of Ahmedabad-based Khyati Chemicals.
According to sources in the chemicals industry, the deal could be worth anywhere between Rs 300 to Rs 400 crore.
The deal will help Dorf Ketal, with an annual revenue of Rs 2,500 crore, to diversify its revenue stream and enter into the performance chemicals business where Khyati Chemicals has a strong presence, according to a statement.
Khyati Chemicals is the second largest player in the optical brightening agents business and have valuable customers like Unilever, Ghadi and Trident India Papers, among others.
Definitive agreements have been signed between current promoters of Khyati Chemicals India and Dorf Ketal Chemicals India for the acquisition.
Once the deal is complete, Khyati Chemicals will become a wholly-owned arm of Dorf Ketal.
“We believe that Khyati Chemicals and Dorf Ketal together would form a strong organisation where we can use our technological leadership and strong global sales force to provide global reach to the products conceptualised and developed by Khyati Chemicals,” Dorf Ketal’s Managing Director Sudhir Menon said.
Khyati Chemicals has a stronghold in export markets like Brazil, China, Argentina, Germany, Indonesia and Thailand, among others and given Dorf Ketal experience and offices in these key markets, the company would be able to add significant value towards execution of the global growth plan, he noted.
Global Investment banking firm Singhi Advisors acted as the exclusive financial and strategic advisor to the transaction. PTI SM AJ RAM
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