Dorf-Ketal Chemicals India Pvt. is the come out as the primary bidder to acquire Aquapharm Chemicals Private Limited, two sources close to the matter have informed Mint.
Dorf-Ketal is a supplier of process chemicals and additives and Aquapharm produces specialty chemicals.
One of the two sources mentioned above who spoke on the condition of anonymity claimed that Dorf-Ketal intends to fund Rs 3,800 crore by selling five-year, non-convertible debentures at 8.5-9 per cent interest. According to the two persons, Aquapharm's owners hope to raise between Rs 4,000 and 4,400 crore from the stake sale.
Tata Chemicals Ltd. and PCBL Ltd., both members of the RP-Sanjiv Goenka Group, are competing for the Pune-based business. Earlier in April, the owners of Aquapharm recruited a US-based investment bank to look towards a full share sale.
According to the second person, Dorf-Ketal Group has more than $1 billion in annual revenues and has recently completed numerous acquisitions on a global scale.
On January 6, it announced that a subsidiary had purchased the 480 crore global modified and synthetic acid business of Canada's Fluid Energy Group. The North American land oil business of Clariant was purchased by Dorf-Ketal in October 2022. It bought India-based Khyati Chemicals in April 2022.
About 50 per cent of Aquapharm is owned by the Mangwani family, who are run by V.K. Mangwani. The Desai family, who own the pickle company Mother's Recipe and are run by Sanjay Desai, own the remaining shares.
Aquapharm is a Pune-based firm that makes specialty chemicals used in water treatment. These include polymers, biocides, and pharmaceutical intermediaries. These chemicals have uses in various industries such as pharmaceuticals, personal care, paper, textile, detergents.