PCBL Announces Acquisition of Aquapharm Chemicals for ₹3,800 Crore

In a strategic move to broaden its global footprint, PCBL, a key player in the RP-Sanjiv Goenka Group, has announced its board of directors' approval for the acquisition of Aquapharm Chemicals, a Pune-based specialty chemicals company, for a whopping ₹3,800 crore. This acquisition aims to propel PCBL into the specialized realms of water treatment chemicals and oil and gas chemicals on a global scale.

The decision, disclosed in a stock exchange filing, revealed that the board granted in-principle approval for the acquisition of 100% of Aquapharm Chemicals' issued and paid-up share capital, equivalent to 2.12 lakh shares. Aquapharm Chemicals, promoted by the Mangwani and Desai families, is known for being India's largest phosphonate producer, operating under the trade name "Aquacid."

PCBL, renowned as the largest carbon black manufacturer in India, formalized the acquisition through a share purchase agreement (SPA) with Aquapharm Chemicals and its key stakeholders, including Vimal V. Mangwani, Dharmesh Mangwani, Nitin Raojibhai Desai, and others. The SPA outlines the terms and conditions, subject to necessary approvals and customary conditions, with an anticipated completion timeline of two to three months from the SPA execution date.

Notably, reports had earlier suggested that Dorf-Ketal Chemicals and Tata Chemicals were also contenders in the bid for Aquapharm Chemicals, which sought financial support through a stake sale.

The RP-Sanjiv Goenka Group, PCBL's parent company, emphasized that the funding for the acquisition would be a combination of internal accruals and external fundraising by the company and/or its affiliates/associates. This move is seen as a significant step towards realizing the vision of establishing a diversified global specialty chemical business portfolio.

Sanjiv Goenka, Chairman of PCBL, expressed enthusiasm about the acquisition, highlighting Aquapharm's status as a leading specialty chemicals company and India's top phosphonate producer. Goenka described the acquisition as "value-accretive" and "margin-accretive," positioning PCBL in a high-growth, high-margin sector. Aquapharm Chemicals, with a consolidated turnover of ₹2,008.8 crore in the previous fiscal year, operates globally with manufacturing facilities in India, the US, and Saudi Arabia, serving a diverse range of global clients in various end-markets with water treatment solutions.

HBL