Everstone among top PEs in talks to buy Calibre Chemicals


Mumbai: Several top private equity funds, including Everstone Capital, are in talks to acquire Calibre Chemicals, the Mumbai-based specialty chemicals maker in a deal that could value the company upward of Rs 1,000 crore.

Bulge-bracket buyout funds, including Advent International and Blackstone Group, are also evaluating if they will make a non-binding offer by early next month, multiple people aware of the development told ET.

JM Financial is advising the promoters on the stake sale. The promoters will keep a minority stake post the transaction, said one among the sources.

Set up in 1984 by Ranjit H Bhavnani, Calibre manufactures a range of specialty chemicals — mineral derivatives (iodine, selenium, cobalt) and peroxygens (persulphates, perchlorates). It is India’s leading producer of persulphates, perchlorates, iodates and iodides.

Calibre’s products are used in pharmaceuticals (APIs, intermediaries, thyroid disorder diagnosis & treatment), in cosmetics (hair bleach), as polymerisation initiators, as heat stabilisers (PVC, Nylon), as nutritional additives (animal feed, salt iodization, baby food), in glass industry, in emulsion explosives (mining) and oil exploration.

For FY20, Calibre posted a revenue of Rs 470 crore, against Rs 397 crore in FY19. Exports of chemicals accounted for around 60% of total revenue of Calibre Chemicals. About 35% of Calibre’s revenue is generated from European markets, 25% from the US, 30% from India and the rest from other markets.

The company has been in the iodine derivatives segment for over three decades, and is one of the leading manufacturers of these products in India.

Presence in the international market has also improved during the last few years, with widespread reach in the US, the UK, the Middle East, Belgium and Germany. Product and geographical diversity should help shield revenue and accrual from downturn in any single product or region, said a recent CRISIL report.

Bhavnani, Calibre Chemicals, Blackstone and Everstone Capital declined to comment while a mail sent to Advent remained unanswered.

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