Specialty chemicals group LANXESS AG is underpinning its long-term growth strategy in the BRIC countries with two acquisitions in Asia. LANXESS subsidiary LANXESS India Private Ltd will acquire the chemical businesses and assets of stock market listed Indian company Gwalior Chemical Industries Ltd for EUR 82.4 mln, including debt. A corresponding agreement was reached with the company and the transaction is subject to formal approval by Gwalior's shareholders and clearance by the relevant antitrust authorities. LANXESS will also acquire the business and production assets of Chinese-based Jiangsu Polyols Chemical Co. Ltd. Both parties have agreed not to disclose the purchase price. Both the transactions are expected to close by third quarter of 2009.
Founded in 1978, Gwalior's headquarters are based in Mumbai and employs about 400 permanent staff. In the first nine months of its business year 2008/2009 (end March 31), the Indian company achieved sales of approximately EUR 45.7 million and an above-peer EBITDA margin of approximately 18 percent. Gwalior is one of the largest Indian producers of benzyl products and one of the leading global producers of sulphur chlorides for the agrochemicals and pharmaceuticals as well as for the flavor and fragrance industries. Its production sites are in Nagda, Madhya Pradesh state, and in Ankleshwar, Gujarat state. In the future, production will be concentrated at the modern Nagda site, which is currently expanding capacities.
Jiangsu Polyols achieved sales of about EUR 10 million in 2008 and currently employs some 170 staff at a facility with competitive technology. It mainly produces trimethylolpropane (TMP) that is used in lubricants, paints, and coatings. LANXESS's business unit Basic Chemicals is already a major supplier of TMP in China and will integrate Jiangsu into its global operations.