Coromandel International Limited, a Murugappa group company that provides agri solutions, has said it will acquire a majority stake in NACL Industries Limited (NACL), a crop protection player with a strong branded formulation business in domestic markets.
It said signed a definitive agreements to acquire the Hyderabad-based company, which also has a strong export portfolio in Technicals and has a presence in contract manufacturing operations with global multinational agrochemical companies.
According to the agreement, Coromandel will acquire 53 per cent shareholding in NACL Industries for a consideration of ₹820 crores at ₹76.7 a share from the current promoter KLR Products Limited.
Coromandel 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 acquisition will position us as one of the leading players in the Indian crop protection industry with a wide range of technicals and pan India presence in the domestic formulation business,” Coromandel’s Managing Director and Chief Executive Officer Sankarasubramanian said in a statement on Wednesday.
“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,” he said.
NACL Industries operates Technical and Formulation plants in Andhra Pradesh, besides having centralised R&D facility near Hyderabad.