German chemicals distributor Brenntag AG signed an agreement to acquire Indias Raj Petro Specialities Pvt. in two phases.
Brenntag announced last week that it will acquire a 65 percent stake of the Mumbai- and Chennai-based supplier of lubricants and process oils in the first tranche of the deal, which is expected to close in April. Brenntag will acquire the remaining 35 percent in 2022, or may choose to defer the deal for another year or two. The two firms will operate Raj as a joint venture in the interim.
Financial terms of the deal were not disclosed, but local media pegged Rajs enterprise value at 92 million (U.S. $108 million).
With facilities close to major ports in the west and the southeast of India, Raj offers Brenntag the potential to expand beyond India, Brenntag Asia Pacific CEO Henri Nejade said in a Dec. 18 press release.
Rajs existing product portfolio and market presence, [and the] capability of its infrastructure and strategic locations, make it a compelling investment target to expand [Brenntags] footprint not only in India but also in other Asia-Pacific countries, in Africa and the Middle East, added Brenntag Group CEO Steven Holland.
In addition to producing automotive and industrial lubricants and greases under its Zoomol brand, Raj Petro manufactures transformer oils, white oils, paraffins, petroleum jellies, process oils, waxes and solvents.
Brenntag has been steadily acquiring chemical distribution companies around the world throughout the past decade. It entered Asia in 2008 and has since expanded to 15 countries in the region.
In 2015, the Mulheim, Germany-based group absorbed J.A.M. Distributing and G.H. Berlin-Windward, two major lubricant distributors in North America. Its portfolio of European lubricant firms includes Mutisol, a distributor with blending capabilities.