Sudarshan Europe B.V. has embarked on a strategic move to acquire the Heubach Group, an esteemed entity in the specialty chemicals industry. This acquisition, valued at €127.5 million, marks a significant milestone for Sudarshan as it aims to enhance its footprint in the global market, particularly in the pigment sector.

The Heubach Group has a remarkable 200-year history, during which it has become the second-largest pigment player in the world, following its acquisition of Clariant’s BU Pigments in 2022. With revenues exceeding €1 billion in both FY21 and FY22, Heubach is recognized for its robust global presence, particularly in regions like Europe, the Americas, and the Asia Pacific.

This acquisition comprises the assets and business operations of several key entities within the Heubach Group, including Heubach Colorants Germany GmbH, Heubach GmbH, and Dr. Hans Heubach GmbH, along with 100% ownership of Heubach Holdings S.a.r.l., a Luxembourg-based firm with investments in companies in India and the USA.

A crucial aspect of this transaction is that it does not fall under related party transactions, as the promoter or promoter group of Sudarshan has no interest in the Heubach entities. This ensures that the acquisition is conducted at arm’s length, a factor that enhances the transparency and integrity of the deal.

The Heubach Group operates within the specialty chemicals industry, offering a diverse range of products, including organic pigments, inorganic pigments, dyes, dispersions, and anti-corrosion pigments. The strategic acquisition will bolster Sudarshan's product portfolio, providing access to high-quality products and facilitating deeper customer connections across 19 global sites.

In terms of regulatory approvals, the transaction is subject to clearance from the Competition Commission of India and other relevant authorities in various jurisdictions. The expected timeline for the completion of the acquisition is approximately 3-4 months, contingent upon satisfying customary closing conditions, which include necessary approvals from regulators and Sudarshan's shareholders.

The financial considerations of this acquisition outline a cash consideration amounting to approximately INR 1,180 crores, with the proposed transaction representing a 100% investment in the Heubach entities mentioned earlier.

The Heubach Group, with its expansive portfolio and historical significance, is positioned well in the global market. The merger will undoubtedly enhance Sudarshan's operational capabilities and product offerings, paving the way for increased competitiveness in the specialty chemicals domain.

In conclusion, this acquisition reflects Sudarshan's commitment to strategic growth and market expansion, aiming to create a comprehensive portfolio that meets the demands of various markets while reinforcing its leadership in the specialty chemicals industry.

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