Sudarshan Chemical Industries has entered into a definitive agreement to acquire Germany-based Heubach Group for ₹1,180 crore (euro 127 million).
The deal is expected to be completed in 3-4 months, subject to relevant approvals.
The Heubach Group faced financial challenges over the past two years due to rising costs, inventory issues and high interest rates. SCIL’s acquisition of Heubach will address these challenges with a clear turnaround plan.
Post-acquisition, the combined company will have a broad pigment portfolio of high-quality products and a strong presence in major markets, including Europe and the Americas.
It will enhance SCIL’s product portfolio, giving it access to customers and a diversified asset footprint across 19 sites globally. Rajesh Rathi, SCIL’s Managing Director, will lead the combined company.
The Heubach Group has a 200-year history and became the second-largest pigment player in the world after its integration with Clariant in 2022.
Heubach had over one billion euros in revenue in FY21 and FY22, and it has a global footprint, especially in Europe, the Americas, and the APAC region.
Rathi said both the companies will be integrated to create a global pigments company, with Frankfurt remaining a strategically important location.
He added that SCIL is known for its agility and efficiency, and we will embed this culture throughout the combined company to make it a customer-centric and profitable pigment company.
Bram D’hondt from Heubach said that by joining hands with SCIL, the Group aims to reclaim its over 200-year legacy of serving customers with high-quality products.
Post-acquisition SCIL will have a wide product portfolio to offer the best-in-class product portfolio to customers.
The integration will create a culture of agility and efficiency, with significant synergies expected across functions.
Heubach has 17 manufacturing sites globally, providing stability during geopolitical and supply chain challenges and ensuring long-term relationships with suppliers and customers.
Incorporated in 1952, SCIL is a leading colour solutions provider with a global outreach of over 85 countries. It produces performance colourants and an extensive range of organic, inorganic, and pearlescent pigments and dispersions.
SCIL has manufacturing facilities in Roha and Mahad and operates under 16 brands. It has 35 per cent domestic market share in its product category.