Tata Chemicals today said it has signed a pact with Allied Silica Limited to acquire its precipitated silica business for Rs 123 crore on a slump sale basis.
The deal is expected to be closed within three months, the company said in a release.
The acquisition is a part of the Rs 295 crore investment approved by the Board in February last year, towards this specialty business, the company said.
The Business Transfer Agreement with Allied Silica includes the acquisition of an existing manufacturing site in Tamil Nadu, which will produce highly dispersible silica (HDS), the release said.
The specialty chemical product represents a downstream value addition to Tata Chemicals soda ash business, where it ranks among the top manufacturers globally, it added.
"This acquisition is another step in our journey to build technologically enabled, differentiated businesses, with greater customer centricity, by leveraging our core strengths.
"The manufacture of speciality and performance silicas is one such area. This is in line with our focus to grow our specialty business, along with our consumer business," said Tata Chemicals managing director R Mukundan.
Precipitated silica is a versatile product with applications in many industries including rubber, oral care, coatings and agrochemicals.
The acquisition also offers the possibility to make value added silica in the future for applications that demand high performance, the release said, adding that the technology for manufacturing HDS, for which eight patents have already been filed, has been developed at the company's innovation centre in Pune.
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