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Solvay accelerates development in India with acquisition of Sunshield Chemicals

Solvay is reinforcing its leading position in speciality surfactants in fast growing markets thanks to an agreement to acquire a controlling interest in Sunshield Chemicals, an Indian company specializing in surfactants.

Solvay announced on 13 September that it has signed an agreement to acquire a controlling interest in Sunshield Chemicals, an Indian company specializing in surfactants, from Amit Choksey Group. This acquisition will enable Solvay’s Novecare business to accelerate growth plans in India for the home and personal care, agrochemicals, coatings and industrial applications markets. Solvay is determined to double its sales in India by 2015.
“This bolt-on acquisition will enable us to speed up our pace of growth in the Indian surfactants market that is currently enjoying double-digit annual growth. With Sunshield Chemicals, we are expanding our existing industrial base in this country and reinforcing our commercial presence in strong growth market segments,” explains Emmanuel Butstraen, President of Novecare. “Our aim is to further consolidate our leading positions in speciality surfactants in Asia and to support our customers’ development in this part of the world.”
Sunshield Chemicals, a company listed on the Bombay Stock Exchange, generated net sales of INR 943 million (EUR 13.5 million) in its most recent financial year ended 31 March 2012. The price of the acquisition results in an Enterprise Value multiple below 9x the estimated adjusted EBITDA for the current year. This transaction enables Amit Choksey Group to focus more on their other activities in the field of pigments and other related products. The operation, subject to fulfilment of customary conditions and agreements, is expected to be concluded within a period of approximately three months.
This acquisition follows the opening of a major innovation centre in Savli (Gujarat State) and further reinforces the Group’s presence and commitment in India. Moreover, Solvay is determined to double its sales in India by 2015. The Group has been doing business in this country since 2000 through its Novecare, Engineering Plastics and Specialty Polymers activities. With seven production sites and about 900 employees, the Group generated net sales of EUR 180 million in India in 2011.
Sunshield Chemicals, an Indian company from Amit Choksey Group, produces and exports surfactants, cross-linkers and antioxidants. Working from its production site near Mumbai, Sunshield Chemicals serves a large number of markets for various applications in agrochemicals, textiles, coatings, lubricants, plastics, metal treatment, home and personal care products. Sunshield Chemicals is based in Mumbai and listed on the Bombay Stock Exchange.
Solvay is headquartered in Brussels, employs about 31,000 people in 55 countries and generated EUR 12.7 billion in net sales in 2011 (pro forma). Solvay SA is listed on NYSE Euronext in Brussels and Paris.
Novecare, one of the major Global Business Units of Solvay’s Rhodia sector generating net sales of approximately EUR 1.6 billion in 2011, provides high-performance products and solutions to a wide range of industries including cosmetics, detergents, agrochemicals, oil & gas, coatings and industrial applications. Thanks to its worldwide industrial presence and a global R&D and tech-support network, Novecare holds front-ranking positions in surfactants, amines, phosphorus derivatives, natural & synthetic polymers and monomers technologies, and eco-friendly solvents-based formulations. Thanks to its expertise in protection, surface modification, rheology, and active delivery, Novecare provides its customers with solutions enabling them to improve their formulations and processes and to protect human health and the environment.

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