Sudarshan Chemical Industries Limited (SCIL) announced that it has entered into a definitive agreement with the Germany-based Heubach Group, on its acquisition in a combination of an asset and share deal.

This strategic acquisition will create a global pigment company, combining SCIL’s operations and expertise with Heubach’s technological capabilities.

Post-acquisition, the combined company will have a broad pigment portfolio of high-quality products and a strong presence in major markets including Europe and the Americas. It will enhance SCIL’s product portfolio, giving it access to customers and a diversified asset footprint across 19 sites globally. The combined company will be led by Rajesh Rathi.

The Heubach Group has a 200-year history and became the second largest pigment player in the world after its integration with Clariant in 2022. Heubach had over a billion euros in revenue in FY21 and FY22, with a global footprint especially in Europe, Americas, and the APAC region.

The group faced financial challenges over the past two years due to rising costs, inventory issues, and high interest rates. SCIL’s acquisition of Heubach will address these challenges with a clear turnaround plan.

“We are delighted with this transaction that brings together two businesses that will cater to major global markets,” Rajesh Rathi, managing director of SCIL, said. “We will carefully integrate these two companies to create a truly global pigments company, with Frankfurt remaining a strategically important location. SCIL is known for its agility and efficiency, and we will embed this culture throughout the combined company to make it one of the most customer-centric and profitable pigment companies.”

“By joining hands with SCIL, we aim to reclaim our 200+ years of legacy of serving customers with high quality products,” added Bram D’hondt of Heubach. “Together, we will shape the future of the pigments industry by building on the ethos of customer centricity and product excellence.”

Heubach has 17 manufacturing sites globally. The combined entity aims to become the most valuable pigment company in the world with great financial strength and profitability. The combined company will be led by Rathi after the close of the transaction. 

The acquisition is expected to close in three to four months, subject to the satisfaction of customary closing conditions, including approvals from regulators and SCIL shareholders.