*Dorf Ketal Chemicals* is planning to buy UK-based *Johnson Matthey’s Vertec *business for around Rs.200 Cr.
If the deal goes through, it will help Dorf Ketal to expand in the global market. The acquisition will not include Vertec’s 50 employees in the company payrolls. UK’s Vertec manufactures specialist organic titanates used in inks, paints and polymers. Vertec had annual turnover of around $20 mn and has been in the red for several years and hence last week, Johnson Matthey decided to shut down the Vertec business in early 2011. If the deal materializes, it would be second acquisition by Dorf Ketal this year after it had acquired global specialty catalysts business of *DuPont Chemicals and Fluoroproducts *for about $40 mn in January that made it the world’s largest player in the organo-metallic titanates space. Over last few years, DorfKetal has been active in the inorganic expansion route. Last year in May, it acquired *Intec Polymers* from Chennai-based *Sanmar Speciality Chemicals* for its expansion in organic titanates. In the past, it has made other overseas acquisitions, including *ExxonMobil’s Component Lubricant Additives Business *in 2007 and *UOP’s *plastics additives business in 2003. Foundedin 1992, Mumbai based Dorf Ketal is a family owned company with a turnover of Rs 1,100 Cr. It is one of the major player in process chemicals and additives for refineries, petrochemicals, fuels, plastics, lubricants and oilfield industries. It has subsidiaries in the US, Brazil, the Netherlands, besides representative offices in China and Bahrain. Transaction Note After DorfKetal’s Dupont acquisition, it was planning to acquire a US based innovative products specialty company for around $75 mn. The company would fund the expansions through a combination of internal accruals and debt. It may also come out with IPO within next two years. Dorf Ketal is constructing a new 10,000-tonne speciality chemicals plant at a special economic zone in Mundra, Gujarat, with an investment of about Rs.100 Cr. In the next phase, its capacity will be raised by another 15,000 tonnes. Currently, it has large manufacturing facilities at Taloja near Mumbai and at Dadra, besides the manufacturing units of acquired facilities abroad. Johnson Matthey is a speciality chemicals company focused on its core skills in catalysis, precious metals, fine chemicals and process technology. Its principal activities are the manufacture of autocatalysts, heavy duty diesel catalysts and pollution control systems, catalysts and components for fuel cells, catalysts and technologies for chemical processes. Some recent deals in the chemical space in India were Artek Surfin Chemicals Ltd. along with Aterian Investment Partners acquired the PVC additives business of Chemtura Corporation, newly named Galata Chemicals and Kiri Dyes and Chemicals Ltd. acquired DyStar Textilfarben GmbH through a SPV – Kiri Holding Singapore for $68 Mn. -- Regards Hardik Shah -- You received this message because you are subscribed to the Google Groups ""GLOBAL SPECULATORS"" group. To post to this group, send email to [email protected]. To unsubscribe from this group, send email to [email protected]. For more options, visit this group at http://groups.google.com/group/globalspeculators?hl=en.
