Sudarshan Chemical Industries Ltd, a Pune-based pigments and agro chemicals manufacturer controlled by Rathi family, has received the board approval to acquire Rieco Industries Ltd for Rs 16 crore ($2.59 million) and the industrial mixers business of Rathi Vessels & Systems Pvt Ltd (RVSPL) for Rs 2.5 crore ($0.4 million), as per a stock market disclosure.
Both Rieco and RVSPL are privately owned businesses of the promoters of Sudarshan Chemical. The promoters will plough back the proceeds as inter corporate deposit/ fixed deposit of the listed firm Sudarshan.
E&Y provided valuation while law firm Crawford Bayley carried legal due diligence for the proposed transactions.
Founded in 1975, Rieco Industries manufactures pneumatic control industrial systems, size reduction and pollution control equipment etc. Its services include engineering services, site related services, equipment inspections, troubleshooting and emission testing.
Rieco has branches in Mumbai, Delhi, Chennai, and Kolkata. And had a turnover of Rs 90 crore for FY14.
RVSPL manufactures industrial mixers for varied applications like mixing, separation, drying, heat recovery, storage & reaction vessels, and other application specific equipment. The firm had a turnover of Rs 33 crore for the year ended March 31, 2014.
Incorporated in 1951, Sudarshan Chemical manufacturers organic and inorganic pigments, mica-based effect pigments, chemical intermediates and pesticides.
The firm is owned by Rathi group and accounts for 70 per cent of the group sales. Sudarshan’s color and effect pigment business is the flagship unit of the group.
In Dec 2011, the firm acquired the natural mica pearlescent business for cosmetics from Eckart GmbH, Germany.
Sudarshan Chemical scrip declined 2.6 per cent to close at Rs 109.6 a share on BSE in a flat Mumbai market on Tuesday, after the related party transaction was disclosed.
Leave Your Comment
1 month ago
Global masterbatch manufacturer Americhem Inc has marked its foray into the...
6 years ago
IFC, the private sector investment arm of World Bank, may invest up to $24...
3 years ago
Gautam Thapar-controlled Avantha Group has inked a deal to sell its entire 34.3...