Sudarshan Chemical to acquire Germany’s Heubach Group

Sudarshan Chemical Industries Limited (SCIL) has announced that it has entered into a definitive agreement to acquire Germany’s Heubach Group in an asset and share portfolio.

This strategic acquisition will create a global pigments company, combining SCIL’s operations and expertise with Heubach’s technological capabilities.

Upon completion of the acquisition, the combined company will have a broad portfolio of premium pigments with a strong presence in key markets such as Europe and America. This will enhance SCIL’s product portfolio, enable it to reach customers, and have a diversified asset footprint across 19 locations globally. The combined company will be led by Rajesh Rathi and an efficient management team with high-quality execution skills and technological capabilities.

The Heubach Group has a 200-year history and will become the world’s second largest pigments business after its integration with Clariant in 2022. With revenues of over €1 billion in FY21 and FY22, Heubach has a global presence, particularly in Europe, Americas and Asia Pacific.

The group has 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.

Commenting on the transaction, Rajesh Rathi, Managing Director of SCIL, said: "We are delighted with this transaction, which brings together two companies that cater to key markets around the world. We will carefully integrate the two companies to create a truly global pigments company, for which Frankfurt will remain a key strategic location. SCIL is known for its agility and efficiency, and we will carry this culture through to the combined company, making it one of the most customer-centric and profitable pigments companies."

Bram D'hondt of Heubach said: "By joining forces with SCIL, we aim to renew our 200-year-old tradition of providing high-quality products to our customers. Together, we will shape the future of the pigments industry with a focus on customer centricity and product excellence. Our combined capabilities will enable us to better serve our customers. We look forward to working with SCIL on this next chapter."

Crawford Bayley and Noerr acted as legal advisors to Sudarshan and DC Advisory acted as financial advisor.