Solvay announced that it has signed an agreement to acquire a controlling interest in Sunshield Chemicals, an Indian company specializing in surfactants, from Amit Choksey Group. This acquisition will enable Solvay's Novecare business to accelerate growth plans in India for the home and personal care, agrochemicals, coatings and industrial applications markets.
"This bolt-on acquisition will enable us to speed up our pace of growth in the Indian surfactants market that is currently enjoying double-digit annual growth. With Sunshield Chemicals, we are expanding our existing industrial base in this country and reinforcing our commercial presence in strong growth market segments," explains Emmanuel Butstraen, President of Novecare. "Our aim is to further consolidate our leading positions in specialty surfactants in Asia and to support our customers' development in this part of the world."
Sunshield Chemicals, a company listed on the Bombay Stock Exchange (BSE), generated net sales of INR 943 million (EUR 13.5 million) in its most recent financial year ended March 31, 2012. The price of the acquisition results in a Enterprise Value multiple below 9x the estimated adjusted EBITDA for the current year. This transaction enables Amit Choksey Group to focus more on their other activities in the field of pigments and other related products. The operation, subject to fulfillment of customary conditions and agreements, is expected to be concluded within a period of approximately three months.
This acquisition follows the opening of a major innovation center in Savli (Gujarat State) and further reinforces the Group's presence and commitment in India. Moreover, Solvay is determined to double its sales in India by 2015. The Group has been doing business in this country since 2000 through its Novecare, Engineering Plastics and Specialty Polymers activities. With seven production sites and about 900 employees, the Group generated net sales of 180 million euros in India in 2011.