International Chemical Investors Group (ICIG), a privately-owned industrial group focusing on mid-sized chemical and pharma businesses, has acquired a majority stake in a Hyderabad-based manufacturer of specialty chemicals and pharma intermediates.
ICIG, which operates several platforms in niche markets, with sales of over 4.6 billion euro, has acquired the stake in Vasant Chemicals from its promoter G.K.B Chowdary for an undisclosed sum. Chowdary remains a minority shareholder in the company.
The company is set to be integrated into the WeylChem Group, the fine chemicals platform of ICIG, the group said in a release.
The acquisition is a key component of WeylChem’s strategic initiative to expand its presence in the global specialty chemicals market, it said.
The strategic alliance will also help Vasant Chemical expand its global footprint and improve its value proposition for customers worldwide.
“By integrating the expertise, resources, and technologies of both companies, the acquisition aligns with our strategic goal to create long-term value for our customers, employees, and stakeholders,” said Andreas Maier, chief executive officer of the WeylChem platform. “It allows WeylChem to directly participate in the fast-growing Indian market and adds a manufacturing and distribution base in Asia.”
Vasant Chemicals, an over 40 years old firm, has manufacturing facilities in Hyderabad and Visakhapatnam. It specialises in the production of specialty chemicals and pharmaceutical intermediates. It exports its products under long-term contractual agreements.
In the financial year through March 2023, the company saw a 16% decline in its revenue from operations to Rs 136 crore from Rs 164 crore in the fiscal before. Its profit after taxes also declined to Rs 8 crore in FY23 from Rs 12 crore in the previous year.
Ambit acted as the exclusive financial advisor to Vasant Chemicals while Deloitte acted as the financial due diligence advisor to ICIG. Dentons Link Legal and S&R Associates acted as the legal counsels to ICIG and Vasant Chemicals, respectively.
