Dorf-Ketal nears Aquapharm deal, looks to raise ₹3,800 cr

livemint.com:

₹3,800 crore for the transaction, one of the two people cited above said on the condition of anonymity. Aquapharm’s owners are looking to raise ₹4,000 crore- ₹4,400 crore from the stake sale, the two people said. Others in the fray for the Pune-based company include Tata Chemicals Ltd and RP-Sanjiv Goenka Group company PCBL Ltd.

Mint first reported on 2 April 2023 that Aquapharm’s owners had hired a US-based investment bank to explore a full stake sale. Dorf-Ketal Group, which has struck multiple acquisitions in recent times globally, has sales of over $1 billion, the second person said. On 6 January, it said that a subsidiary had acquired Canada’s Fluid Energy Group’s global modified and synthetic acid business, which had a turnover of ₹480 crore.

In October 2022, Dorf-Ketal acquired Clariant’s North American land oil business. In April 2022, it acquired India-based Khyati Chemicals. Dorf-Ketal’s financial risk profile is supported by healthy cash accrual and moderate capital expenditure plans after FY23, a Crisil report dated 8 March said.

“While the overall debt may increase to ₹1,350 crore as on March 31, 2023, gearing may moderate to ~1 time due to debt addition to funding the recent acquisitions. The group plans to focus on integrating and ramping up the acquired businesses over the next 1-2 years," the report added. Tata Chemicals declined to comment.

Spokespeople for Aquapharm Chemicals, Dorf-Ketal, and the RP-Sanjiv Goenka group did not respond to emailed requests for comment. The Mangwani family, led V.K. Mangwani, owns around 50% in Aquapharm.