Sudarshan Chemical Industries Ltd. of India has completed its purchase of German pigments maker Heubach Group.
The deal was valued at around $139 million. In a March 3 news release, officials with SCIL in Mumbai said the acquisition expands its global presence with operations across 19 sites. They added the deal "creates a broad pigment portfolio with state-of-the art technologies."
SCIL Managing Director Rajesh Rathi will lead the combined entity as CEO. "Our goal is now to create the world's most valuable pigment company with great financial strength and profitability," Rathi said.
Officials said Heubach became the second largest pigment player in the world after its integration with Clariant in 2022 and had sales of more than 1 billion euros in both 2021 and 2022. But they added the firm faced financial challenges in 2023 and 2024 because of rising costs, inventory issues and high interest rates.
SCIL's acquisition of Heubach "will address these challenges with a clear turnaround plan," officials said. They added that Germany "remains a strategic location" for SCIL, and that by establishing a second global headquarters in the Frankfurt area, SCIL "underscores the region's role as a key pillar of its operations and future growth."
The deal first was announced in October, six months after Langensheim, Germany-based Heubach started insolvency proceedings. Officials said at the time the filing was made because of potential over-indebtedness following rapid change in financial markets in the past two years.
Heubach traces its roots to 1806, when Goslaer Farbenfabrik began making pigments in Goslaer, Germany. Heubach posted sales of just under $960 million in 2023, down 18 percent from almost $1.2 billion in 2022.
SCIL is a global supplier of color effects and pigments for plastics and other markets. The publicly held firm posted operating profit of $307 million in the year ended March 31, 2024.