Rain CII Carbon LLC, a wholly owned subsidiary of Rain Commodities Ltd., has agreed to acquire Rutgers N.V, a Belgium-based coal tar pitch manufacturer.
Rain CII executed share purchase agreement with Triton to acquire a 100 per cent stake in Rutgers for a value of 702 million euros or about Rs .4,918 crore. The transaction is expected to close in the first quarter of 2013, subject to regulatory approvals and customary closing conditions.
Rain Commodities Ltd., along with its subsidiaries (Rain Group) is engaged in production and sale of calcined petroleum coke (CPC), cement, co-generation of energy and trading of fuel-grade green petroleum coke.
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The Group has nine coke calcining plants in the U.S., India and China and two integrated cement plants in Andhra Pradesh. It also has one fly ash handling and a packaging facility in Karnataka. Rain CII is planning to fund the transaction through a combination of internal cash accruals and issue proceeds of 533 million euros of Long-Term bonds.
Expanding business
The acquisition of Rutgers is seen as complementary to Rain’s core business of CPC. Expanding into the tar distillation business constitutes both product and geographical diversification the Group.
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Triton is an investment firm dedicated to investing medium-size businesses headquartered in Northern Europe, with 23 companies in its portfolio.
PTI reports
Rutgers was sold by Germany’s speciality chemicals major Evonik Industries in 2007 to Triton Partners. The company had recorded gross revenues of 831 million euro for the financial year ended December 2011.
Rain Commodities scrip closed at Rs.41.25 on the Bombay Stock Exchange, down 4.51 per cent from its previous close.