Rhodia accelerates growth in India with acquisition

PARIS, FRANCE: Accelerating its growth in India, Rhodia recently announced that it is acquiring PI Polymer the engineering plastics business of the Indian company PI Industries Ltd. With the acquisition, Rhodia Group aims to increase its market share in the Indian polyamide compound market to more than 15 per cent by 2015. “The acquisition will reinforce the already strong positions we have in fast-growing economies. We have identified strong synergies in terms of product range and customer portfolio that will dramatically accelerate our growth in India,” said François Hincker, President, Rhodia Engineering Plastics. “Combing PI Polymer’s expertise and Rhodia’s global footprint, we plan to rapidly expand activity, with a capacity increase scheduled shortly,” he added.

PI Polymer forecasts about $ 13 million sales revenue for its fiscal year 2010/11. The acquisition price represents an estimated 2010/11 EBITDA multiple of around 7x. The completion of the transaction is expected to be finalized by the end of March 2011. This acquisition will strengthen the group’s presence in India, where Technyl® engineering plastics are already imported.

(C) WOC News