Rhodia to accelerate its growth in India with the acquisition of PI Industries’ Engineering plastics business.Rhodia announces the signing of a binding agreement to acquire PI Polymer, the engineering plastics business of the Indian company PI Industries Ltd. This transaction supports the Group’s ambition to attain more than 15% of market shares in the Indian polyamide compound market by 2015.
“This acquisition will reinforce the already strong positions we have in fast-growing economies. We have identified strong synergies with our engineering plastics business in terms of product range and customer portfolio that will dramatically accelerate our growth in India”, commented François Hincker, President of Rhodia Engineering Plastics.
He added: “Rhodia and PI Industries share a common vision and values with regard to responsible chemistry and we are fully committed to provide the highest level of customer service, product quality and social responsibility. Combining these core values with PI Polymer’s expertise and Rhodia’s global footprint, we plan to rapidly expand this activity, with a capacity increase scheduled shortly”.
PI Polymer forecasts about $13 million sales revenue for its fiscal year 2010/11. The acquisition price represents an estimated 2010/11 EBITDA multiple of around 7x. The transaction includes all the assets used and held by PI Polymer, primarily one industrial facility that employs more than 80 people, R&D capabilities, customer base and logistics network in India. Subject to various customary closing conditions, the completion of the transaction is expected to be finalized by the end of March 2011.
This acquisition will strengthen the Group’s presence in India, where Technyl® engineering plastics are already imported. Rhodia has operated in the country since 2001 through its surfactants business, serving the home & personal care and coatings markets.
