NYSE-listed petrochemical major LyondellBasell has agreed to acquire Aurangabad-based SJS Plastiblends Pvt Ltd, a polypropylene compounds (PPC) manufacturer, for an unspecified amount, according to a press statement.
The acquisition is expected to help the Luxembourg-based company—which is into plastics, chemical and refining—strengthen its presence in the Indian automotive market.
LyondellBasell has been catering to the Indian automotive market through imports and tolling arrangements since 2009 and plans to expand in this segment with this acquisition.
“This acquisition will expand our global PPC manufacturing footprint and allow us to better compete in the long-term growth of India’s automotive market,” said LyondellBasell's CEO and chairman of management board Bhavesh V Patel.
The two companies signed a definitive agreement last week and the transaction is expected to close in late 2015.
LyondellBasell manufactures products at 55 sites in 18 countries. Its products and technologies are used in packaging, electronics, automotive parts, home furnishings, construction materials and bio-fuels.
Reliance Industries had made a failed bid worth $14.5 billion for LyondellBasell in 2010, a deal later snapped by PE giant Apollo Global. Apollo exited the firm four years later after taking it public, making one of the biggest returns from a PE deal ever.
Founded in 1996, SJS Plastiblends makes products that improve performance and aesthetics of plastics in automotives. The firm has approximately 60 employees and one manufacturing site with annual production capacity of approximately 12,000 metric tonnes of PPC.
These compounds are used in the production of thermoplastic materials for the automotive, home appliances and other markets.
Mumbai-based investment bank Singhi Advisors was the financial advisor to the privately held SJS Plastiblends for the transaction.