Nearly an year after acquiring the global operations of DyStar Group, Ahmedabad-based Kiri Dyes and Chemicals Ltd (KDCL) is acquiring the North American unit of the company in a $10 million deal. Kiri Dyes, which is one of the world`s largest dyes company, is buying the US arm
of DyStar which has revenues of $100 million with EBITDA of $10 million.
The deal includes DyStar's production unit and warehouse in ReidsvilleNorth Carolina and another warehouse in Southgate, California. The deal has been routed through Kiri Holding Singapore Pvt. Ltd., a wholly owned subsidiary of Kiri Dyes and Chemicals. Kiri had acquired DyStar Textilfarben GmbH and its selective assets for a price of $68.5 million (Rs 312 crore) in December last year.
Kiri Dyes raised Rs 240 crore through a qualified institutional placement late last month, selling shares at Rs 597 per unit. The share price of Kiri Dyes was trading Rs 605 at 1:55 pm today, down marginally.
With this deal, Kiri Dyes expects to have revenues of $1 billion in FY11. Also with ongoing restructuring of operations and and transfer of dyes from Germany to Asia, the group is expectd to save direct and indirect costs.
“It is our intention to build a sustainable global DyStar organization. For that, we need a powerful sales organization in North and Central America and maintain the retailer connection,” said Manish
Kiri, Co-Chairman of the DyStar Group