Chemicals major PCBL plans to acquire Pune-based Aquapharm Chemicals for ₹3,800 crore

PCBL Ltd, which is one of the leading players in carbon black and specialty chemicals, said, on Tuesday, that it plans to acquire a full 100% stake in Aquapharm Chemicals Pvt Ltd (ACPL) for a total consideration of ₹3,800 crore. 

The financing for this acquisition, contingent upon the agreed adjustment, will be sourced from a combination of internal accruals and external fundraising by the company and its affiliates, the company said in an exchange filing.

"In furtherance of such approval, the Company has executed a share purchase agreement dated 28 November 2023 (“SPA”) with ACPL, Mr. Vimal V. Mangwani, Mr. Dharmesh Mangwani, Mr. Nitin Raojibhai Desai and other shareholders of ACPL, for undertaking the Proposed Transaction, subject to inter alia obtaining all necessary approvals and fulfillment of other customary conditions, as per the terms and conditions specified in the SPA," the company said in a release.

PCBL has entered the global specialty segments of water treatment chemicals and oil & gas chemicals through this acquisition, according to the company. The funding for the transaction will come from a combination of internal accruals and external fundraising.

ACPL, a Pune-based specialty chemicals company, is among the top three globally in its sector, specializing in the manufacturing of water treatment chemicals. The company operates manufacturing facilities in India, the US, and Saudi Arabia, managing overseas plants through subsidiaries.

In the fiscal year 2022-23, ACPL reported a topline of ₹2,045 crore and an EBIDTA of ₹417 crore. The completion of this transaction is contingent on obtaining all necessary approvals. The stock concluded at ₹254.90 per share on the NSE, experiencing a 2.6% decrease.

"It is the first milestone in achieving the vision of creating a multi-platform global specialty chemical business portfolio," the company explained further. The stock closed at ₹254.90 apiece on the NSE, down 2.6 percent.