Coromandel Int'l buys 53% stake in agro-chemical firm NACL for Rs 820 cr

Coromandel International Ltd has acquired a majority 53 per cent stake in agro chemical firm NACL Industries Ltd for Rs 820 crore and will launch an open offer to buy an additional up to 26 per cent of equity.

In a regulatory filing on Wednesday, Coromandel International said the board has "approved the acquisition of 10,68,96,146 equity shares of the NACL Industries, representing 53.13 per cent of the paid up equity share capital..."  A share purchase agreement has been signed amongst Coromandel International, NACL Industries Ltd, the seller (i.e, KLR Products Ltd); K Lakshmi Raju (being a promoter) and Bright Town Investment Advisor Pvt Ltd (being a member of the promoter/promoter group of the target).

Coromandel International, one of the leading agri-solutions providers, has signed definitive agreements to acquire majority stake in NACL Industries.

"Coromandel is set to acquire 53 per cent shareholding in NACL industries, for consideration of Rs 820 crore at Rs 76.7 per share from the current promoter KLR Products Ltd," the company said.

It also proposes to make an open offer to the public to acquire up to 26 per cent of the equity share capital of the company as per the Sebi Takeover Regulations.

The proposed transaction, likely to be completed over the next few months, will position Coromandel as one of the leading players in the Indian crop protection industry with a wide range of technicals and pan-India presence in domestic formulation business, the company said.

This will also help in expanding Coromandel's scale, accelerating its entry into contract manufacturing business, fast-tracking new product commercialisation and expanding its product portfolio.

NACL Industries operates technical and formulation plants in Andhra Pradesh, besides having centralised R&D facility near Hyderabad.

NACL's subsidiary has also recently invested in technical grade facility at Dahej, capable of manufacturing active ingredients. It has established formidable partnerships with key global players, offering contract manufacturing services for over two decades.

Coromandel's Executive Chairman Arun Alagappan said, "Coromandel's long-term strategy has always been centred on driving sustainable growth and market leadership. The decision to acquire NACL Industries is a natural extension of company's growth vision."  "By combining our extensive distribution network and deep industry expertise with NACL's manufacturing capabilities, diversified product portfolio and large formulations presence, we are setting the stage for a significant increase in operational scale. The acquisition not only expands our scale but also enables us to tap into critical customer segments and secure strategic CDMO relationships," he added.