Kiri Dyes and Chemicals Ltd (KDCL), an Ahmedabad-based company engaged in the manufacturing of organic dyes for cotton fabrics, has executed a purchase agreement with DyStar Group, a Germany-based company in a similar space. As part of the agreement, the company will acquire DyStar Group and its selective assets for an undisclosed sum.
Reports suggest the deal size is somewhere in the region of £100 million (about $164 million).
KDCL has made the agreement through Kiri Holding Singapore Pvt Ltd, a special purpose vehicle of the company. The acquisition is subject to necessary approval from the government of Germany, said the company in a filing to the Bombay Stock Exchange.
DyStar Group claims about 21% market share in dyes and pigments space globally. It supplies products to companies across sectors including apparel, hosiery and automotive. It has presence across 50 countries globally with employee strength of 3,500 people.
In September quarter, KDCL revenue was Rs 8028.9 crore, as compared with Rs 7018.3 crore a year before. Net profit was Rs 926.7 crore against Rs 537.8 crore.