Bain wins race for Porus

Private equity firm Bain Capital has acquired Porus Laboratories of Hyderabad, India, subject to regulatory approval. Financial terms were not disclosed but values in the region of $300-365 million were mentioned during the process. CVC Capital and Advent International had also been interested in Porus, according to reports.

Porus operates in markets including speciality polymers, electronic chemicals and agrochemicals. In the 2022 financial year, it had sales of $97.9 million, 19% up on 2021, and EBIDTA of $29.3 million, almost double that of the previous year. Bain, which already has a stake in Lonza and owns Italmatch Chemicals, said that it intends to “leverage Porus’ capabilities to create a platform in the speciality chemicals contract development and manufacturing sector”. Further acquisitions may follow.

According to a report by KPMG in late 2022, the speciality chemicals segment “continues to remain an attractive hub for opportunities for both domestic and multinational manufacturers”. It is projected to grow from $178 billion in 2021 to $304 billion by 2025 and already accounts for 7% of GDP.