RP Sanjiv Goenka, Bain Capital and Dorf Ketal are the frontrunners to acquire Pune-based AquaPharm Capitals, which is at a valuation of Rs 4,500 crore, sources were quoted as saying by The Economic Times.
AquaPharm Capitals makes specialty chemicals for water treatment and is promoted by the Mangwani family. As per the ET report, the promoters are likely to sell off their entire shareholding in the company.
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Stifel Financial Corp has been appointed as the banker for the transaction by Aquapharm.
The acquisition reports have come when Indian investors are more keen in investing in India’s chemical industry as global buyers look to diversify sourcing beyond China. "It is one of the truly international Indian chemicals companies, so naturally the interest is high," sources said.
As per reports, a significant chunk of its business comes from exports, mainly to Europe and North America. It also has subsidiaries in the US, Saudi Arabia, Europe and Hong Kong.
The Pune-based company had acquired US-based Aquapharm Chemicals LLC in 2018 and Saudi Arabia-based Unique Solutions for Chemical Industries Company in 2019. The US unit mainly manufactures chemicals for the oil and gas sector while the Saudi unit deals in desalination plants and has major contracts with a local government agency.
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The chemical company is also said to be the market leader in the phosphonates segment as well as its diversification into other products.
"The group's longstanding presence has led to healthy relationships with domestic and overseas customers, including Procter and Gamble, Henkel AG, Ecolab Inc, Buckman Laboratories International Inc, and Unilever," Crisil Ratings said in a report last year.
The company has two manufacturing facilities in Maharashtra with a total installed manufacturing capacity of 70,000 tonnes. It manufactures phosphonates, polymers, biocides, and pharmaceutical intermediaries, which are widely used in detergents, paper, textile, pharmaceutical, personal care, water treatment and leather.