Germany-based Brenntag AG, a chemical distribution company, has acquired 65% stake in Raj Petro Specialities Pvt. Ltd., which has commanded an enterprise value of €92 million.
“The deal closing comes into force from April 2018,” said Steven Holland, CEO, Brenntag. “The remaining 35% stake will be acquired after five years, with a possible extension of an additional one or two years.”
‘Brand to continue’
Briefing reporters, Amit Nanavati, director, Raj Petro, said, “We will continue to market our product under the existing brand name.”
Brenntag provides distribution solutions for industrial and speciality chemicals worldwide. The company also provides value-added services. statement from the company said it serves customers in industries, such as adhesives, paints, oil and gas, food, water treatment, personal care, and pharmaceuticals.
Chennai-based Raj Petro’s portfolio contains transformer oils, white oils and paraffins, petroleum jelly, process oils, waxes and solvents and industrial and automotive lubricants.
The oil and lubrciants firm caters to industries such as FMCG, pharmaceutical, automotives, industrials, rubber, energy and power in Asia-Pacific and West Asia.
“Last year, Raj Petro posted a revenue of ₹1,190 crore, of which exports accounted for 30%,” said Mr. Nanavati. This year, it is eyeing revenues of about ₹1,400 crore. “We have also built a new warehouse measuring 1 lakh sq.ft. in Mumbai,” he added.
In the current fiscal, Brenntag said it expected India revenue to be about €250 million, including the contribution of Raj Petro’s revenue.
