Eternis Fine Chemicals Ltd, a Mumbai-based aromatic compounds manufacturer, has fully acquired a United Kingdom-based speciality chemicals company, it said on Tuesday.
Apart from the acquisition of Leek, Staffordshire-based Tennants Fine Chemicals Ltd, Eternis has also bought the company’s wholly-owned subsidiaries in Singapore and China from Tennants Consolidated Ltd.
The two companies did not disclose the financial details of the transaction. Lincoln International acted as the exclusive financial adviser on the deal, while DSK Legal (India) acted as the legal adviser to Eternis.
The acquisition will help Eternis and Tennants Fine Chemicals complement each other’s offerings, as well as leverage aspects such as their multi-location manufacturing and distribution platforms.
“The addition of this large independent, high-end manufacturer enhances our business and brings with it many strategic advantages. We will now have established operations in Europe and Asia, with the ability to service our customers from stock hubs and partners,” Eternis managing director Rajen Mariwala said.
Mariwala is part of the family that runs consumer products firm Marico. He is the cousin of Harsh Mariwala, the chairman of Marico Ltd.
“Our regional service strategy in China and SE Asia has proved beneficial and will be further strengthened with the addition of Eternis’ products,” Tennants Fine Chemicals MD Billy Gittins said. The company has a capacity for over 26,000 tonnes of liquid chemicals, which it exports to nearly 90 countries around the world.
Eternis Fine Chemicals was set up in 1988. It was originally known as Hindustan Polyamides and Fibres Ltd before being rebranded in 2015. The company operates three manufacturing facilities in Maharashtra, with a total capacity of 40,000 tonnes.
According to VCCEdge, the company reported consolidated net sales of Rs 947.86 crore for the 2019-20 financial year, with net profit of Rs 29 crore for the same period.
The company has also made at least one other acquisition to augment its capacity and portfolio. In June 2018, VCCircle reported that Eternis had acquired AIMS Impex Pvt. Ltd, a maker of fragrance ingredient coumarin and other speciality flavour and fragrance chemicals.