Sudarshan to buy Heubach

India’s Sudarshan Chemical Industries (SCIL) has entered into a definitive agreement to acquire the Heubach Group in a move that it said would “create a global pigment company, combining SCIL’s operations and expertise with Heubach’s technological capabilities”.  Terms were not disclosed.

The deal is expected to close in four months, subject to customary closing conditions, including approvals from regulators and SCIL shareholders. The combined firm will have 19 sites and a strong presence in major markets including Europe and the Americas, as well as SCIL’s two major sites in India that make performance colorants, organic, inorganic and pearlescent pigments and dispersions, and azo and effect pigments.

Frankfurt-based Heubach had over €1 billion in sales in the 2021 and 2022 financial years but faced financial challenges since then, due to rising costs, inventory issues and high interest rates. SCIL said that the acquisition “will address these challenges with a clear turnaround plan”.

The centre of the integration process, SCIL added, will be a “culture of agility and customer focus”. The strategic and financial benefits are also said to include a wide product portfolio across segments and applications, and a global supply chain network combined with SCIL’s R&D and innovation capabilities.