PCBL to Acquire Entire Stake in Aquapharm Chemicals Pvt Ltd for Rs 3,800 Crore

Carbon black and specialty chemicals major PCBL Ltd announced plans to acquire the entire stake in Aquapharm Chemicals Pvt Ltd (ACPL) for an aggregate consideration of Rs 3,800 crore. The acquisition will be financed through a mix of internal accruals and external fundraising by the company and its associates. This acquisition marks PCBL's foray into the global specialty segments of water treatment chemicals and oil & gas chemicals.

Acquisition Details

The transaction will be financed through a combination of internal accruals and external fund raise. ACPL is a Pune-based globally top three leading specialty chemicals company, manufacturing and water treatment chemicals. The company has manufacturing facilities in India, the US, and Saudi Arabia. Overseas plants are being operated through subsidiaries. ACPL topline was Rs 2,045 crore and EBIDTA was Rs 417 crore in 2022-23. The transaction is subject to obtaining all necessary approvals.

Comments from PCBL Chairman

PCBL Chairman Sanjiv Goenka said, "Aquapharm is a leading specialty chemicals company and India's largest phosphonate producer. The acquisition is value accretive and margin accretive... It's a unique opportunity and we are delighted to take it."

Stock Performance

The stock closed at Rs 254.90 apiece on the NSE, down 2.6 per cent.

The acquisition of ACPL is a significant move for PCBL as it will allow the company to enter the global specialty segments of water treatment chemicals and oil & gas chemicals. The deal is expected to be completed subject to obtaining all necessary approvals.