Coromandel International Ltd paid Rs 820 crore for a majority 53% stake in agrochemical firm NACL Industries Ltd and plans to launch an open offer to buy up to 26% more equity.
The board has "approved the acquisition of 10,68,96,146 equity shares of NACL Industries, representing 53.13 percent of the paid-up equity share capital..." according to a regulatory filing made by Coromandel International.
A share purchase agreement has been signed by Coromandel International, NACL Industries Ltd, the seller (i.e., KLR Products Ltd), K Lakshmi Raju (promoter), and Bright Town Investment Advisor Pvt Ltd.
Coromandel International, a leading agri-solutions provider, has signed definitive agreements to acquire a majority stake in NACL Industries.
"Coromandel is set to acquire 53 percent shareholding in NACL industries, for consideration of Rs 820 crore at Rs76.7 per share from the current promoter KLR Products Ltd," according to the organization.
In compliance with the Sebi Takeover Regulations, it also suggests putting up to 26% of the company's equity share capital up for public purchase.
According to the company, the planned deal, which is anticipated to be finalized in the coming months, will establish Coromandel as a major force in the Indian crop protection sector with a wide range of technical skills and a nationwide presence in the domestic formulation market.
Additionally, this will help Coromandel grow by speeding up its foray into the contract manufacturing industry, expanding its product line, and promoting the commercialization of new products.
NACL Industries operates technical and formulation plants in Andhra Pradesh, as well as a centralised R&D facility near Hyderabad.
NACL's subsidiary has also recently invested in a technical-grade facility in Dahej, capable of producing active ingredients. It has built formidable partnerships with key global players and has been providing contract manufacturing services for over two decades.
Coromandel's Executive Chairman, Arun Alagappan, stated, "Coromandel's long-term strategy has always been focused on driving sustainable growth and market leadership. The decision to acquire NACL Industries is a natural extension of the company's expansion strategy."
"By combining our extensive distribution network and deep industry expertise with NACL's manufacturing capabilities, diverse product portfolio, and large formulations presence, we are paving the way for a significant increase in operational scale." The acquisition not only broadens our reach, but also allows us to enter critical customer segments and secure strategic CDMO relationships," he added.
