Sudarshan Chemical completes Heubach Group acquisition - Integration shall be Key

In October 2024, Pune based Sudarshan Chemical Industries Limited (“SCIL”) took a bold step by announcing the acquisition of “Global Pigment Business Operations of the Heubach Group” (“Heubach”) of Germany.

- Anirudha Jain

To put in perspective, SCIL shall acquire a company with almost 3-4x of its existing revenue. Recently, SCIL announced that it has completed the proposed acquisition through its wholly owned subsidiary Sudarshan Europe BV.

The Heubach Group has a 200-year history and became the second largest pigment player in the world after acquiring Clariant's BU Pigments in 2022. Heubach had over 1 Billion Euros in revenue in FY21 and FY22, with a strong global footprint especially in Europe, Americas, and the Asia Pacific region. In 2022, Heubach team up with S.K. Capital to acquire Clariant's global pigment business, at a valuation of about Euro 850 million making the combined entity worth more than Euro 1 billion.

The Acquisition

The transaction comprises of acquisition by Sudarshan Europe B.V. of:

(i) assets and business operations of

(a) Heubach Colorants Germany GmbH,

(b) Heubach GmbH

(c) Dr. Hans Heubach GmbH, and

(d) Heubach Group GmbH and participations held by Heubach Holding Switzerland AG, in downstream Group Companies in various countries from insolvency administrator in the aforesaid countries.

(ii) 100% shareholding of Heubach Holdings S.a.r.l., a Luxemburg based Heubach Group Company having investments in shareholding in companies based in India and USA.